According to a letter to the staff sent on Thursday by founder and CEO Roham Gharegozlou, Dapper Labs is going to lay off 20% of its full-time employees as part of a renewed effort to restructure the organization.
Restructuring has begun
According to the CEO, the Dapper Labs organization is in the process of restructuring to ultimately improve their focus and efficiency. Reportedly, no one who has not been notified by now is not affected.
This is the 2nd notable series of layoffs for Dapper Labs. In November, the company laid off 22% of its employees for growing too fast. The workforce had exploded from 100 to 600 employees in less than two years. At the time, Gharegozlou stated that the cuts were necessary for the long-term health of Dapper’s business and communities.
Difficult week behind us
The company has also had a difficult week. Last Wednesday, a judge named Victor Marrero of the United States (US) District Court denied Dapper’s request to dismiss a lawsuit related to the platform’s NBA Top Shot NFT collection. He wrote that the NFTs offered by Dapper seem to fit the definition of a security.
According to Gharegozlou, a lot of incorrect information is being spread about the nature of this statement. He explained that the ruling only means that the case will continue without a substantive decision on whether NBA Top Shots are securities or not.
Finally, Gharegozlou thanked the Dapper Labs team and concluded by saying that he is committed to improving the company, learning from the past, and growing Dapper Labs products and communities.