Dapper Labs informed the investors of its decision to reduce its headcount by another 20%. The decision conveyed to investors via email follows the November 2022 decision, where 22% of the workforce was laid off.
Corporate Restructuring Makes Layoff Necessary
Describing the move as inevitable, Dapper Labs chief executive Roham Gharegozlou’s email portrayed the decision as mandatory to survive the harsh crypto winter. The February 22 announcement noted that parting ways with 20% of full-time employees were critical to the corporate restructuring.
Gharegozlou stated that Dapper Labs has a solid financial position. The executive dismissed speculations that the firm is battling a considerable debt and cash deficit. Instead, the chief executive observed that the firm is liquid enough to meet its short-term obligations as they fall due.
Accomplishing Desired Cost Structure
Gharegozlou reflected on the 22% layoff implemented in the last quarter of 2022. The executive regretted the inability to accomplish desired cost structure. He added that laying off 20% of the current workforce aligns with Dapper’s long-term objective.
Gharegozlou assured investors of the need to grow Dapper Labs communities sustainably. He regrets the problematic spell in the year 2022 and the early weeks of 2023, worsening the cost structure. Nonetheless, the layoffs are critical to molding a viable shape to steer Dapper Labs’ path ahead.
Dapper’s NFTs Considered Securities
The announcement of the decision to sack 20% of staff coincided with a critical ruling by a federal judge that identified Dapper’s NBA Top Shot Moments” non-fungible tokens as securities.
The February 20 ruling prompted the Gharegozlou update. The chief executive observed that the verdict identifying its offer as NFT would not pursue discovery.
However, he ruled out that Dapper had already reached a substantive decision on the matter.
Editorial credit: T. Schneider / Shutterstock.com
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