Yuga Labs, the creator of the popular NFT collection Bored Ape Yacht Club, has undergone a significant company-wide restructuring, including staff layoffs, in response to challenges within the crypto industry.
Yuga CEO Daniel Alegre confirmed the completion of this restructuring process in a recent tweet.
According to Alegre, the primary focus of this restructuring is to prioritize the development and execution of Yuga Labs’ Otherside metaverse project. The interoperable metaverse platform was unveiled earlier this year as a gateway to additional gaming and virtual worlds.
Alegre emphasized the importance of Otherside, stating,
“Otherside is a very important bet for Yuga, and when our creative team brought the concept for Metropolis up to my leadership team, making it a tentpole experience for Otherside felt like a slam dunk.”
Although the specific details of the staff layoffs were not disclosed, Alegre mentioned that Yuga Labs continues to employ over 120 people after the reorganization. He also assured that departing employees would receive “generous severance” packages and assistance in finding new roles.
The staff reductions have primarily affected the U.S. team, while international operations are still under review.
Yuga co-founder Greg Solano had earlier announced these restructuring plans on October 6. He said changes were needed to ensure long-term success.
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
“It’s a challenging time, not only for our industry but also for the global economy,”
Alegre acknowledged in his recent tweet.
This move is in line with a broader trend of downsizing within the crypto sector as market conditions remain uncertain. Yuga Labs joins other major players in the industry, such as Coinbase and Gemini, who have also reduced staff to control costs.
The news of this restructuring coincides with a court hearing at the U.S. Appeals Court on October 16, 2023, concerning Yuga’s trademark lawsuit against artist Ryder Ripps. This lawsuit was related to Ryder’s creation of copies of Yuga’s Bored Ape Yacht Club NFTs. Yuga expressed skepticism about dismissing the lawsuit.
Yuga Labs remains best known for launching the Bored Ape Yacht Club NFT collection in 2021. However, it gained significant attention in March 2023, when it was valued at $4 billion following a $450 million funding round led by Andreessen Horowitz.
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