- Yuga Labs has recently restructured its operations, resulting in layoffs.
- CEO Daniel Alegre cited a need to refocus the company and engage more external partners
- Chainalysis and Legder have also announced staff cutbacks as the crypto winter continues
Yuga Labs has become the latest blockchain company to cut staff, with the company announcing a significant company restructuring that has resulted in layoffs. The announcement, made on a Friday, was accompanied by a public team email from Yuga Labs CEO Daniel Alegre. Alegre articulated his belief that the company had taken on too many internal projects, necessitating a renewed focus on external partnerships. Yuga Labs follows in the wake of Chainalysis and Ledger who last week announced that they too had cut staff as a result of a challenging economic environment, both in crypto and outside it.
Yuga Labs Overstretched Itself
Yuga Labs is a giant in the NFT world, with a valuation of some $4 billion, but in his email, Alegre acknowledged that there were numerous well-intentioned projects the company had taken on that had either overextended the team or demanded expertise outside their core capabilities. This realization came after his arrival from Activision earlier in the year, prompting the need for strategic adjustments.
The exact number of affected employees was not disclosed by Alegre, and Yuga Labs declined to provide further details. However, it was clarified that the restructuring primarily affected US-based employees, while evaluations of international teams are ongoing. Yuga Labs co-founder Greg Solano confirmed in an X post that the team still consisted of over 120 employees, with the acquisition of WENEW having increased their global full-time workforce to more than 100 by November:
I’m sure many of you have seen the news that Yuga is undergoing a restructure today. Shit day obviously. Hurts to part ways with team members who have been in the trenches with us. But we needed to make some changes to the company in order to make sure we’re set up for longterm… https://t.co/RF0QGydqze
— Garga.eth (Greg Solano) (@CryptoGarga) October 6, 2023
While acknowledging the pain of parting with dedicated team members, Solano emphasized that the changes were essential for the company’s long-term success. He highlighted that the company had been stretched thin for some time, with wins in certain areas but subpar execution in others.
Crypto Winter Still Has Chilling Effect
Solano’s sentiments mirrored those expressed by Alegre, who recognized successful projects in the company’s portfolio for the year, such as the Dookey Dash game, the TwelveFold generative art pieces through Bitcoin Ordinals, and partnerships with brands like BAPE and Gucci. However, he also acknowledged shortcomings in certain product launches, signifying the need for restructuring to optimize the company’s trajectory.
Ledger and Chainalysis both last week announced staff cutbacks in a bid to secure their long-term futures, while other statistics point to the suggestion that the crypto bear market is still well and truly with us.
