Crypto startup Ava Labs, the company behind the Avalanche Blockchain Network has laid off 12% of its workforce on Monday, November 6.
Ava Labs to Double Down on Company’s Growth
Emin Gün Sirer, the founder and CEO of Ava Labs, took to Twitter to announce that the company has decided to let go of 12% of its employees. This strategic move will enable the company to reallocate resources, with a focus on strengthening the growth of both the firm itself and the Avalanche ecosystem.
He added: “Bear markets are difficult to navigate,” he added. “Ava Labs is fortunate to have significant runway and resources at our disposal, and we will be focusing those resources on advancing the Avalanche ecosystem for years to come.”
Today we parted ways with some of our Ava Labs team members. We are no longer a 12 person startup, but we strive to capture the speed and energy of a small, nimble team.
This reduction in force affected 12% of Ava Labs, and allows us to reallocate resources to double down on the…
— Emin Gün Sirer🔺 (@el33th4xor) November 7, 2023
On Monday afternoon, Garrison Yang, who serves as the VP of Growth and Strategy at Ava Labs, revealed on Twitter that the layoffs had affected numerous individuals within the company’s marketing division. Another employee who was let go expressed that the layoffs have also impacted “many others.”
It is not yet evident whether these Monday cuts have affected the technical teams within the company. However, the widespread nature of these layoffs, taking even the current challenging crypto market conditions into account, came as a surprise to many employees.
Layoffs in Crypto Market
While the crypto markets have rallied substantially this year, it’s not all glory for crypto firms as they continue to suffer from tight liquidity conditions.
Towards the end of the previous week, NFT marketplace OpenSea also underwent a comparable “restructuring” process, resulting in the layoff of roughly 50% of its total workforce. It is noteworthy that less than two years ago, OpenSea enjoyed an exceptionally strong position, achieving a remarkable $13.3 billion valuation following a Series C funding round.
Similarly, Yuga Labs, the company behind the very popular BAYC NFTs, announced layoffs last month while focusing on its core strengths. The company is now focusing its efforts on Otherside, Yuga’s gamified metaverse. This digital platform offers an amalgamation of gaming, entertainment, and interactive social connections, all guided by Eric Reid and his team’s strategic vision.
Ava Labs has also been working on its tokenized initiatives and announced a $50 million initiative earlier this year.
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