Leading NFT Company Dapper Labs Announces Employee Layoffs

Employee layoffs NFT company. (Photo; Doc. Talent Republic)

JAKARTA - Dapper Labs Inc, a leading company in the non-fungible token (NFT) industry, has announced a significant layoff (PHK), marking the company's third layoff.

This layoff round comes in response to the challenging market environment facing the NFT market. A total of 51 employees, or about 20 percent of the company's workforce, are expected to leave Dapper Labs.

Dapper Labs CEO Roham Gharegozlou confirmed the departure of 51 employees through an announcement on Twitter. Gharegozlou said that the ongoing market conditions and lack of interest in digital artwork are the main factors contributing to this latest downsizing. However, he also stressed the need for business downsizing to ensure the company's survival.

This layoff is the third layoff by Dapper Labs in recent times. In February, the company reduced its workforce by 20 percent, and in November last year, labor reductions reached 22 percent. This downturn also reflects the challenges faced by the NFT sector as a whole.

Despite layoffs, Gharegozlou assured stakeholders that Dapper Labs and its related platform, Flow, remain financially strong. Gharegozlou said the company remains committed to prioritizing fans and to encourage healthy community growth.

In addition to layoffs, Dapper Labs is also entangled in a legal battle related to his NBA NFT collection Top Shot. The judge of the United States District Court, Victor Marrero, rejected Dapper Labs' request to drop a lawsuit claiming that the NFT offered by the company may be included in the securities definition. Plaintiffs argue that digital artwork sold on the Dapper Labs platform can be classified as securities.

The company's spokesman confirmed that the judge's refusal did not mean that the plaintiff was right or that this was the final decision in this case. Dapper Labs is still hoping to face this legal challenge as the case continues.

Dapper Labs is not the only company in the crypto industry to experience layoffs due to challenging market conditions. Research and blockchain analysis firms Massari, Crypto.com, and Circle have also announced a reduction in manpower in recent months.

The crypto industry remains a dynamic and challenging environment, and companies continue to adapt to these changes. The stakeholders will see how Dapper Labs and other companies address these challenges and continue innovations in the growing crypto industry.