The creators of Bored Ape Yacht Club, Yuga Labs, joins the roster of crypto companies downsizing. The company’s restructuring aims to prioritize its metaverse, Otherside.
In the wake of Ledger, a renowned cryptocurrency hardware wallet maker, announcing a 12% staff cut, Yuga Labs has now followed suit, revealing its own downsizing measures.
Yuga Labs’ CEO, Daniel Alegre, shared in a recent blog post that the company is undergoing a restructuring phase, which unfortunately means letting go of some team members. “After careful deliberation, I’ve concluded that we need to reshape Yuga Labs’ teams,” Alegre mentioned in a memo referenced by The Block. He further added, “This restructuring has led to the removal of several roles across the company, impacting some of our colleagues.”
While Alegre didn’t disclose the exact number of affected employees, he clarified that the current changes are primarily impacting the U.S.-based staff, with evaluations of international teams still underway.
Yuga Labs’ Metaverse Ambitions
Upon reflecting on the company’s direction, Alegre expressed concerns about Yuga Labs’ overreaching ambitions and emphasized the need for a more focused approach. “When I joined Yuga six months ago, my top priority was to set a clear vision centered around creative storytelling. However, I quickly realized that while many projects were well-intentioned, they either spread our team too thin or were beyond our core expertise,” he stated.
He further highlighted the company’s commitment to nurturing its community and brand, with a significant emphasis on expanding their metaverse, Otherside. Alegre acknowledged the company’s lapse in consistently updating the public on Otherside’s progress but assured forthcoming updates about the virtual realm.
Alegre also touched upon the broader challenges faced by the cryptocurrency industry and the global economy, hinting at them as potential reasons behind the restructuring. “These are challenging times, not just for our sector but for the global economy at large. We need to stay true to our core strengths while continuing to deliver unique and engaging experiences for Yuga’s broader audience,” he remarked.
Crypto Space Sees More Layoffs
Established in early 2021, Yuga Labs quickly rose to fame with its flagship project, the non-fungible token (NFT) collection, Bored Ape Yacht Club (BAYC). This vibrant collection of bored-looking monkeys became an instant hit, with some pieces fetching millions. The collection even garnered celebrity attention. However, with the crypto market’s downturn, NFT prices have seen significant drops.
Bored Ape Yacht Club’s lowest price plummeted 62% this year, from 69.49 ETH (USD $83,400) in January to 26.19 ETH (USD $42,800) in October. Meanwhile, Otherside’s weekly sales volume has been stagnant since April, recording a mere USD $356,000 in the first week of October, as per The Block’s data.