Dapper Labs to lay off 22% of employees, cites current macroeconomic environment

NFT giant Dapper Labs is the most recent to declare that it is reducing its staff size because of the ongoing economic crash. The company announced it is letting go of 22% of its workforce, citing the macroeconomic situations.

Dapper Labs founder and CEO, Roham Gharegozlou informed that the departing staff members have received email alerts and those who haven’t are staying. In addition to the “difficult decision” to lay off its staff as the company is preparing for reorganization, the executive continued by saying he accepts responsibility for that. He states: 

“These reductions are the last thing we want to do, but they are necessary for the long-term health of our business and communities. We know web3 and crypto is the future across a multitude of industries – with 1000x potential from here in terms of mainstream adoption and impact – but today’s macroeconomic environment means we aren’t in full control of the timing.”

Troubled Dapper Labs’ NBA Top Shot

NBA Top Shot, which also happens to be one of Dapper Labs’ most liked projects, is continuously losing players, after making a major impact at the start of 2021. In terms of monthly sales, NBA Top Shot actually fell to a level not seen in nearly two years. The platform’s sales plunged this year after surging in January.

According to data from CryptoSlam, NBA Top Shot’s sales on the secondary market fell to less than $2.7 million in October, a 43% drop from the about $4.7 million in transactions that were made the previous month.

The announcement comes after Dapper Labs and Google Cloud signed a long-drawn collaboration deal. Earlier this year, the blockchain-based business raised nearly $300 million. Michael Jordan, Kevin Durant, Klay Thompson, Will Smith, and Ashton Kutcher all participated during the round.

This October has seen many companies laying off their employees including Crypto.Com, which reduced its staff by unexpected numbers and the major lay off of 33% NYDIG.