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Yuga Labs Announces Restructuring Initiative
Yuga Labs, the creator of the Bored Ape Yacht Club NFT project, recently announced a significant restructuring initiative. The company, founded in early 2021, revealed plans for a new round of layoffs following a previous wave that took place last October.
Greg “Garga” Solano, co-founder of Yuga Labs and current CEO, shared the news of the restructuring via Twitter, emphasizing the need for the company to realign its focus and streamline its operations. In a message to the team, Solano acknowledged the challenges that Yuga Labs has faced, stating that the company had “lost its way” and needed to become a “smaller, more agile, and crypto-native team.”
The exact number of positions affected by the restructuring remains unclear, as Yuga Labs has not provided specific details. Despite reaching out to the company for clarification, Decrypt did not receive an immediate response.
Bored Ape Yacht Club: A Rapid Rise and Recent Challenges
Yuga Labs gained prominence with the launch of the Bored Ape Yacht Club NFT project on Ethereum three years ago. The collection of 10,000 unique profile pictures (PFPs) quickly became a dominant brand in the NFT space, with prices soaring to nearly $430,000 worth of ETH per NFT on secondary markets by April 2022.
The startup experienced rapid growth, securing a $450 million funding round in March 2022 and acquiring the IP of the influential CryptoPunks NFT project from Larva Labs. The introduction of the ApeCoin (APE) crypto token further solidified the Bored Ape ecosystem, rewarding NFT holders and the company with significant profits.
However, Yuga Labs faced challenges following its expansion into gaming, particularly with the launch of the Otherside metaverse game. Despite generating substantial revenue from NFT land plot sales, the project encountered criticism for its design and high network fees. The Bored Ape ecosystem also experienced a decline in NFT prices, delays in launching Otherside, and the recent sale of gaming IP assets to refocus its efforts.
Solano, in his message to the team, highlighted the need to rethink Yuga Labs’ approach and return to its creative roots. He emphasized the importance of reducing organizational complexity and focusing on rapid, impactful delivery rather than prolonged planning processes.
Looking ahead, Solano hinted at a forthcoming plan to steer Yuga Labs towards a more streamlined and agile operation. By reflecting on the company’s early successes and emphasizing a return to fast-paced innovation, he aims to navigate Yuga Labs through its current challenges and set a course for future growth and success.
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