After taking on too many diversified projects, Yuga Labs, the company behind popular NFT collections like Bored Ape Yacht Club, announced a business restructure that may result in employment losses.
Yuga CEO Daniel Alegre said the company had cut a lot of roles in a tweet on October 6. Alegre acknowledged that Yuga had overextended itself over too many programs, while actual layoff figures were not given.
Alegre claimed that soon after joining Yuga Labs, he recognized that many well-intentioned projects were taking the company’s focus away from its core competencies and strengths. In order to refocus, Yuga will pay closer attention to major brand collaborations, Otherside metaverse development, and community participation.
According to Alegre:
The layoffs indicate that Yuga is reducing expenses and streamlining operations in order to return to its NFT roots, such as Bored Ape Yacht Club, which routinely makes millions in secondary sales. The NFT market has experienced a decline in 2022 following a meteoric surge during the previous two years. Given the worsening circumstances, Yuga is probably trying to cut costs.
However, the business continues to command one of cryptocurrency’s most valuable brand names and devoted followings. Yuga expects to retain momentum for its future metaverse and entertainment goals with fresh guidance from Alegre. The restructure comes after recent turbulence in the cryptocurrency and NFT industries as businesses prepare for a protracted bear market. The layoffs at Yuga are comparable to those at industry titans like Coinbase and OpenSea and show that no player is immune to the current negative trends.
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