Yuga Labs, the parent company behind NFT giants like Bored Ape Yacht Club (BAYC) and CryptoPunks, is the latest addition to the list of Web3 enterprises undergoing substantial changes, including layoffs, as part of a comprehensive restructuring initiative.
In an announcement made just a few days back, both on X (formerly known as Twitter) and the company's official blog, Yuga CEO Daniel Alegre offered insights into the company's recalibration efforts.
The layoffs predominantly impacted Yuga's United States (US)-based teams, although the precise number of affected employees remains undisclosed.
Yuga's recent restructuring move serves as a reflection of the broader challenges confronting the crypto industry and the global economy at large.
Daniel, who assumed the role of Yuga's CEO approximately six months ago after a successful tenure at Activision Blizzard as President and COO, emphasised the necessity of recentreing the company's efforts.
“It's a challenging time, not only for our industry but also for the global economy. We must stay focused on our core strengths as we continue to create unique, engaging experiences for the broader Yuga audience. The restructure today impacts US team members, and we are actively reviewing the impact on our international teams.”
During his time at Yuga, he identified that certain projects, while well-intentioned, either stretched the team's capacity too thin or diverted from Yuga's core areas of expertise.
What Is Yuga Labs' Restructuring Plans After The Layoffs?
Amidst the ongoing reorganisation, Yuga Labs is redirecting its focus towards its gamified metaverse world known as "Otherside."
Daniel underscores the pivotal role of digital interactions in driving the evolution of Otherside.
Three key strategic pillars anchor this transformation.
Firstly, there is a strong commitment to nurturing community relationships to foster brand engagement and growth.
Secondly, the "Otherside Strategy" takes centre stage, guiding all digital initiatives to enhance gaming, entertainment, and interactive social connections, with Eric Reid leading prominent initiatives in this domain.
Lastly, Yuga Labs leverages its in-house development expertise, particularly in Web3 and Otherside, while fostering long-term external partnerships.
In the realm of community-centric updates, Yuga Labs is reinforcing its support for BAYC projects like "Made by Apes," aiming to preserve the brand's foundational ethos.
Upcoming highlights include ApeFest Hong Kong and a major gaming announcement scheduled for 2024.
Regarding CryptoPunks, the company is dedicating resources to uphold and amplify the collection's crypto-artistic heritage through educational initiatives, including an upcoming book and video series, app enhancements, and engaging experiences.
Furthermore, the integration of Meebits and 10KTF into Otherside represents a strategic move to maximise their potential within the metaverse.
Amidst these extensive changes, Daniel emphasises that Yuga Labs remains unwavering in its mission, ranging from its approach to intellectual property rights to solidifying its leadership position in the media and entertainment sector.
He affirmed that:
“I strongly believe that Yuga will forever change how consumers and brands interact.”