Last Updated on May 8, 2024 by Kamran Ali
According to Yuga Labs co-founder Greg Solano, the Web3 platform has “lost its way” and has, therefore, made more layoffs. The company, which has 150 people in employment, will have to deal with staff whose jobs are currently at stake. In addition, Solano encouraged employees who would prefer not to participate in the company’s next phase of development to consider accepting the same severance pay that was provided to those affected by the most recent layoffs.
Yuga Labs Reduces Workforce Amidst $4 Billion Valuation
Yuga Labs, which developed the non-fungible token (NFT) collection popularly known as the Bored Ape Yacht Club (BAYC), recently announced more staff layoffs. As part of this strategy shift, several company operations were also terminated.Â
Based on information from Trueup.io, Yuga Labs is estimated to be valued at $4.0 billion and currently employs 150 people.
Solano stated that the company “lost its way” and that the layoffs were necessary since the company needed to return to its foundations. With a renewed focus on crypto-native activities and a leaner, more agile team structure, Solano stated that the objective is to get the company back on track.
CEO Highlights Internal Issues Following Layoffs
In a statement, Solano, who became CEO of Yuga Labs in February, listed a number of issues the company was facing, including “labyrinthine corporate processes,” which he claimed undermined the “creative-first spirit” of Yuga Lab.
About 120 US-based employees were laid off by the company in the final quarter of 2023. Daniel Alegre, the company’s then-CEO, acknowledged the challenging conditions the company was operating in at the time and also brought up a serious shortcoming in the company’s capabilities: namely, that the company lacked the manpower necessary to finish certain projects that required knowledge beyond its basic competencies.
Solano claims that Yuga Labs’ high valuation impacted the company’s internal culture. According to his suggestion, the company unintentionally developed an “easy mode” setting.
Solano claims that when Yuga had roughly twelve individuals, someone made a high-value approach. He made it clear that they were currently under a lot of pressure to deliver innovative items rapidly. He admitted that, in many ways, they were working in a favorable situation, but they also experienced lucky breaks.
Solano went on to say that Yuga Labs would put commitment, speed, and adaptability first in the future. He also said that those who decided it was time to quit might receive the same redundancy payout as their laid-off colleagues.
Takeaways
Yuga Labs’ decision to speed up layoffs highlights the need for the company to review its approach and focus on projects that are specific to the cryptocurrency industry. Greg Solano, a co-founder, emphasizes a leaner, more flexible team structure to address internal problems and foster a better culture of innovation and creativity.
