Mike Novogratz-backed NFT Startup Slashes Workforce

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  • Mike Novogratz-backed NFT startup Candy Digital has massively reduced its workforce
  • Candy Digital is believed to have let over 30 of its 100 employees go
  • Some of the affected employees camped on Twitter to look for new opportunities

Candy Digital, a sports NFT startup with Mike Novogratz, Michael Rubin and Gary Vaynerchuk as founders, has laid off over 30 of its 100 employees. Although the platform hasn’t yet released the actual numbers, sources familiar with the situation have intimated that Candy Digital has reduced its workforce by one-third. Some of the affected employees have already moved on and are looking for new opportunities in a market that’s yet to recover from the FTX collapse.

No Official Communication but “I was Part of the Layoffs”

Although Candy Digital is yet to reveal the criteria behind the massive layoffs or the departments affected, the collapse in the NFT market is likely the biggest factor, and the company’s content management department looks to be part of the casualties.

Mathew Muntner, the department’s ex-community content manager, has confirmed the development on Twitter saying that he “was part of the layoffs.”

Muntner’s tweet received a warm reception from prospective employers and former workmates, with some thanking him “for everything [he] did for the [Candy Digital] community.”

Candy Digital Follows NBA Top Shot Creator, OpenSea and Metaplex

The layoffs come at a time when the NFT and crypto market, in general, is under a bearish spell, making Candy Digital another firm in the space to succumb to the pressure. Others that have reduced their workforce as a way to survive the crypto winter include NBA Top Shot creator Dapper Labs and leading NFT marketplace OpenSea which laid off more than 20% of their staff between July and November this year.

Solana’s NFT engine developer, Metaplex Studios, has also downsized its workforce citing unfavorable market conditions induced by the FTX saga. With the bear market still holding firm, it’s likely that more NFT and crypto-based startups will continue reducing their workforce to survive the current crypto winter.