Bored Ape NFT creator Yuga Labs is laying off employees during a restructuring phase. CEO Greg Solano, known as "Gargamel," announced the move, stating that it was necessary for transforming the company and making it "smaller, more agile and cryptonative." The number of employees affected remains undisclosed.
Yuga Labs Restructures, Laying Off Employees for a 'Return to Roots'
Miami, April 27, 2024 - Yuga Labs Inc., the company behind the immensely popular Bored Ape Yacht Club NFT collection, has embarked on a significant restructuring phase, resulting in the dismissal of an undisclosed number of employees. This announcement has sent shockwaves through the cryptocurrency community, raising questions about the future of the once-dominant NFT conglomerate.
In a public statement, CEO Greg Solano, known as "Gargamel," acknowledged the difficult decision to lay off talented team members. He emphasized that this move is an integral part of the company's transformation strategy, aiming to "get ourselves centered and on the right path." Solano's announcement was accompanied by excerpts from an internal communication sent to the affected staff, informing them of their departure during a scheduled meeting later in the day.
The restructuring marks a pivotal moment for Yuga Labs, which has faced several obstacles in recent times. Despite raising an impressive $450 million in 2022 at a valuation of $4 billion, the company encountered challenges, including backlash over a controversial token project. Yuga Labs also faced a lawsuit from investors who alleged misleading promotions by celebrity endorsers who failed to disclose their paid affiliations with the NFT project. Furthermore, the highly anticipated launch of the Otherside video game, inspired by the Bored Ape universe, has experienced delays.
Solano's reference to "returning to the roots" implies a strategic shift for Yuga Labs. The company's early success was largely attributed to its deep involvement in the cryptocurrency ecosystem. However, the recent controversies and setbacks may have prompted the leadership to reassess their priorities and focus on their core strengths.
"Yuga lost its way," said Solano in his internal communication. "Getting ourselves centered and on the right path means being a smaller, more agile, and cryptonative team." This statement indicates a desire to streamline operations, embrace the decentralized nature of the cryptocurrency industry, and reignite the company's original vision.
The restructuring and layoffs have raised concerns about the future of the Bored Ape Yacht Club NFT project and Yuga Labs' other ventures. However, Solano has expressed confidence that the company will emerge stronger from this transition. He emphasized the importance of making difficult decisions today to ensure long-term success, reiterating his commitment to "transforming Yuga and getting us back to our roots."
As the NFT market continues to evolve, Yuga Labs' strategic shift will be closely watched by industry experts and investors alike. Only time will tell whether the restructuring will enable the company to navigate the challenges it faces and regain its former glory.
