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Dapper Labs CEO Roham Gharegozlou announced today that they have parted ways with 51 full-time employees and contractors, but assured that the company’s capital is in good shape. The new layoff decision comes after the layoffs in February of this year and November of last year.
Company’s Revenue Significantly Dropped
Dapper Labs, the company behind NBA Top Shot and Flow Blockchain, has conducted a new round of layoffs by dismissing 51 employees including full-time staff and contractors. This decision came following layoffs that occurred in February at a rate of 20%, and in November 2022 at a rate of 22%.
Dapper Labs CEO Roham Gharegozlou admitted the difficulty of the decision but emphasized that it was necessary for a leaner and more efficient company. Gharegozlou reassured that they are well capitalized to continue the missions of both Dapper Labs and Flow. He stated that Flow has a separate capital pool and provides several years of cash flow for short-term operations without the need to sell tokens to the team.
While Dapper Labs achieved early success with NBA Top Shot, reaching a valuation of $7.6 billion in September 2021, recent data provided by CryptoSlam shows a significant decline in the company’s revenue. NBA Top Shot, which earned $224 million in sales revenue at its peak in February 2021, only earned $1.93 million last month.
Toxic Corporate Culture
Information from former employees has raised concerns about Gharegozlou’s extravagant lifestyle and focus on celebrity partnerships, some believe may have strayed from the company’s core mission. Additionally, allegations of the CEO’s bullying and shaming employees in public led to comments on a toxic company culture.
