KEY POINTS
Yuga Labs, the company behind the popular non-fungible token (NFT) collection Bored Ape Yacht Club (BAYC), is undergoing layoffs as part of what it describes as a “restructuring” effort.
The announcement was made via a post on X (Twitter) on Friday, April 26, by Yuga Labs CEO, Greg Solano.
In a letter addressed to employees, Solano explained that the company is determined to change its direction and operations, needing some difficult strategic decisions, including a restructuring that impacts certain roles within the company.
Solano admitted that Yuga Labs had “lost its way” and outlined a plan for the future, which involves operating with a smaller team and focusing on fewer but more impactful endeavors.
This move follows Solano’s re-appointment as CEO in February, where he outlined plans to rejuvenate key projects and reinforce the company’s position in the Web3 space.
As part of this strategy, Yuga Labs recently sold two gaming intellectual properties, “HV-MTL” and “Legends of the Mara,” to Faraway, indicating a shift in focus.
BAYC, one of its flagship projects, has faced challenges due to market downturns in 2023. Just two weeks ago, the floor price of the collection plummeted to 11.08 ETH, marking its lowest point since August 2021.
Many celebrities who had invested in BAYC NFTs during its heyday experienced significant declines in the value of their holdings. For example, actor Kevin Hart’s BAYC NFT, purchased in 2022, recently sold for 74% less than its original price.
Despite these setbacks, BAYC maintains a prominent position in the NFT space. According to data from DappRadar, BAYC ranks second in top collections by sales volume over the last 30 days, and second overall after Axie Infinity in terms of all-time sales volume.
