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Yuga Labs Job Cuts Could Hit 150 People after BAYC Founder “Lost Its Way”

Last Updated April 29, 2024 11:23 AM
Teuta Franjkovic
Last Updated April 29, 2024 11:23 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Yuga Labs admits it “lost its way” and is restructuring with layoffs to return to its core values.
  • Up to 150 people could lose their jobs.
  • Yuga Labs now demands renewed commitment and a faster pace from the remaining staff.
  • Those who don’t fit the new, leaner structure are encouraged to accept a severance package and move on.

Greg Solano, co-founder of Yuga Labs, stated  that the Web3 platform has made additional layoffs partly because it had “lost its way.”

The company, which employs around 150 people, will be speaking to the staff whose jobs are under threat later today (April 29 2024).

Solano also encouraged employees who are not interested in participating in the next phase of the company’s development to consider accepting the same severance package that was offered to those affected by the recent layoffs.

Yuga Labs Lays Off More Staff Amidst $4 Billion Valuation

Yuga Labs, which founded the non-fungible tokens (NFTs) Bored Ape Yacht Club (BAYC) collection, recently announced further employee layoffs. As part of this strategic shift, the company has eliminated several roles.

According to data from Trueup.io , Yuga Labs currently has 150 employees and is valued at approximately $4.0 billion.

Solano explained that the layoffs were necessary because Yuga Labs had “lost its way,” necessitating a return to its roots. The objective, according to Solano , is to reorient the company towards a leaner, more agile team structure with a renewed focus on crypto-native projects.

Yuga Labs did not immediately respond to a request for comment.

CEO Reveals Internal Problems After Layoffs

In a statement  , Solano, who reassumed his role as Yuga Labs CEO in February, Solano identified several issues affecting the company. These included “labyrinthine corporate processes” that, he claimed, diluted Yuga Labs “creative-first spirit”.

Yuga Labs had already let go of about 120 US-based employees in the last quarter of 2023. At that time, then-CEO Daniel Alegre recognized the challenging environment the company was operating in.

He also noted that Yuga Labs lacked the necessary manpower to carry out certain projects that required expertise beyond its core competencies, highlighting a significant gap in the company’s capabilities.

Demanding Speed and Agility After Layoffs: “Align or Leave”

Solano said Yuga Labs’ substantial valuation had an effect on its internal culture. He suggested it inadvertently led to an “easy mode” atmosphere within the company.

Solano remarked :

“When Yuga was just about a dozen people, someone came to us with a massive valuation. Our ethos at that time was simply to ship products that not only delight but also to do it with a sense of urgency—as if your butt is on fire. We had our moments of luck and brilliance, but in many ways, we were playing the game on easy mode.”

Solano went on to say that Yuga Labs would focus on speed, agility, and commitment in the future. He also said that those who felt enough was enough could leave, with the same redundancy deal as their laid-off colleagues.

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