Dapper Labs, the Non-fungible token (NFT) company behind CryptoKitties, has again let go of a fraction of its workforce due to the ongoing economic crash. The layoff sees the company axe 20% of its full-time employees while citing corporate restructuring according to the announcement.
Although the decision is a difficult one for the platform, its CEO, Roham Gharegozlou said in the release that the organization is solely focused on strengthening its position in the market and serving the community in any way possible. As such, everyone affected by the layoff will be generously compensated.
The company promised the affected employees a severance package including health continuation benefits, access to four months of digital mental health support depending on the health provider, and many other incentives. Interestingly, Dapper Labs is in a strong cash position and has no record of outstanding debts.
These recent layoffs follow after Dapper Labs reduced its staff size by 22% four months ago citing macroeconomic situations as the company prepares for reorganization.
Meanwhile, the recent layoffs continue what has been a difficult week for the company. Earlier in the week, a US District Court Judge rejected Dapper Labs’ request to dismiss the lawsuit that claims its NBA Top Shot NFTs are securities. The judge ruled that the case proceeds to discovery after it said the NFTs appear to meet the definition of security.
Beyond Dapper Labs, Other Crypto Layoffs
The reduction of headcount by heavyweights industry players suggests the crypto winter is not ending anytime soon. Most exchange platforms have adopted a new trend of dismissing their employees in order to ensure long-term viability.
Aside from the most recent layoffs by Dapper labs, Polygon Labs, the first well-structured, easy-to-use platform for Ethereum (ETH) scaling and infrastructure development announced the layoffs of 100 (20%) members of its team. The firm cited the global crypto harsh market conditions and its plans to restructure its operations as the reason for the cutback.
Meanwhile early this year, ConsenSys, a decentralized exchange built on the ETH blockchain announced its plan to cut down its staff, about 100 or more of them. Although the exact number is yet to be disclosed, sources familiar with the matter said the crypto winter and the volatile crypto market may be the major contributors to the cut down of staffing.
