Dapper Labs lays off employees to streamline business
Dapper Labs, the NFT company known for NBA Top Shot, has announced another round of layoffs in an effort to create a leaner business. CEO Roham Gharegozlou stated that 51 employees, including full-time staff and contractors, were let go. This comes after the company previously cut 20% of its staff in February and 22% in November 2022. Gharegozlou acknowledged that the decision was difficult but necessary for the efficiency of Dapper Labs. He emphasized that both Dapper Labs and its blockchain, Flow, are well capitalized to continue their mission without the need for short-term funding.
Key Points:
- Dapper Labs laid off 51 employees, including full-time staff and contractors.
- This is the second round of layoffs after a 20% reduction in February and 22% reduction in November 2022.
- The decision was difficult but necessary for the efficiency of Dapper Labs.
- Dapper Labs and its blockchain, Flow, are well capitalized and have separate pools of funding.
- Gharegozlou’s past behavior and pursuit of celebrity partnerships have raised concerns about his priorities.
Toxic culture
Former employees have accused CEO Roham Gharegozlou of creating a toxic company culture through his alleged “bullying” and “public shaming” of employees. Gharegozlou’s focus on personal indulgence and celebrity partnerships has also raised questions about his priorities. Despite the negative allegations, Dapper Labs has seen a decline in revenue from its NBA Top Shot platform, with sales dropping from $224 million in February 2021 to just $1.93 million last month. The layoffs and restructuring aim to address these challenges and streamline the business.
Hot Take
Dapper Labs’ decision to lay off employees and focus on creating a leaner business reflects the challenges faced by the NFT company. While the CEO’s behavior and prioritization have been criticized, the company’s emphasis on efficiency and capitalization demonstrates a commitment to its mission. As the NFT market continues to evolve, Dapper Labs will need to adapt and innovate to maintain its position in the industry.
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