• Gharegozlou stated that the company was reorganizing to increase its focus.
• Dapper Labs had to lay off 22% of its workforce in November.

In an effort to reorganize the company, Dapper Labs will be letting off 20% of its full-time employees, as stated in a letter addressed to employees on Thursday by founder and CEO Roham Gharegozlou.

Gharegozlou stated that the company was reorganizing to increase its focus and efficiency. Moreover, it also aims to cement its position in the market. Moreover, those who did not get an email were not affected by the changes.

Essential to Sustainability of Operations

For context, this wave of layoffs is the second of note. Due to the company’s fast expansion (from 100 to 600 people in less than two years), Dapper Labs had to lay off 22% of its workforce in November. Gharegozlou originally said that these reductions were essential to the sustainability of Dapper’s operation and local communities.

Roham stated in the letter sent:

“We are deeply grateful to our departing colleagues and wish them well in future endeavors. Today is a difficult day—please be there for each other, and take time for yourselves.”

Moreover, he suggested that workers communicate with their supervisors or even come to him with any concerns or queries. He promised the remaining workers that the dismissed workers would be taken care of.

So far, the corporation has had a rough week. United States District Court Judge Victor Marrero ruled against Dapper on Wednesday, denying the company’s motion to dismiss a lawsuit over the platform’s NBA Top Shot NFT collection on the grounds that the NFTs supplied by Dapper’s platform seems to fulfil the definition of a security.