- This was stated by the CEO of the company in a letter to investors
- The wave of cuts was explained by the reorganization
- In total, the company laid off almost half of the employees in six months.
Dapper Labs CEO Roham Garegozlow announced the upcoming layoffs. The reason for the new wave of layoffs is restructuring. But at the same time, how claims Garegozlow, at the company “strong financial position“.
This is the second layoff in six months. Prior to this, in November 2022, Dapper Labs laid off 22% of employees, i.e. 134 people. This decision was explained in the management by cost optimization as part of the global strategy.
Apparently, the company has not yet completed the reorganization. The CEO wrote about the additional reduction in staff in a letter to investors.
Garegozlow called this step “difficult but necessary.” At the same time, he tried to reassure depositors by mentioning a “strong financial position with no outstanding debt.”
“We can only think long term with the right cost structure. Our goal is to sustainably develop the community” — stressed the CEO.
However, critics think otherwise. According to crypto experts, the reduction in staff is dictated by the “turbulence” that the firm has fallen into. Recall that the court ruled that one of the collections of Dapper Labs refers to securities in accordance with the Howey Test.
This not only sets a dangerous precedent (NFTs are regarded as derivatives), but also “hit” Dapper Labs. It is possible that the very “combat uniform” that the CEO mentioned in the letter is needed for a lengthy legal battle.
