Yuga Labs Announces Company Restructuring and Workforce Reductions
In a recent memo, Yuga Labs CEO Daniel Alegre revealed that the company will undergo a restructuring process, which will include workforce reductions. Alegre stated that this decision was made after careful consideration and aims to streamline the Yuga Labs teams.
Alegre emphasized the importance of focusing on creative storytelling and community building, which are at the core of Yuga’s vision. He acknowledged that certain projects, although well-intentioned, stretched the team too thin or required expertise beyond their core competencies.
Moving forward, Yuga Labs will prioritize growing its community and brand engagement. The company will also dedicate resources to developing Otherside, its metaverse extension.
Yuga’s Declining Sales
The sales volume for Otherside has experienced a significant decline since April. According to The Block’s Data Dashboard, it reached only $356,000 in sales during the first week of October, compared to previous weekly volumes in the millions.
Additionally, Yuga’s prominent NFT project, Bored Ape Yacht Club, has seen a 62% drop in its floor price this year. On January 1, the floor price was 69.49 ETH ($83,400), but as of October 6, it had fallen to 26.19 ETH ($42,800).
Hot Take: Yuga Labs Faces Challenges Amidst Restructuring
Yuga Labs’ decision to restructure and reduce its workforce reflects a strategic move to refocus on core competencies. By prioritizing community engagement and investing in Otherside, the company aims to regain its market momentum.
However, the decline in sales volume for Otherside and the significant drop in Bored Ape Yacht Club’s floor price indicate the challenges Yuga Labs currently faces. It remains to be seen how the restructuring efforts will impact the company’s future success in the competitive NFT market.
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