The non-fungible token (NFT) industry has been faced with a constant downfall and the situation keeps moving south.

Due to the constant downtrend, the firms operating within the NFT space are forced to cut their workforce.

This is the reason why there has been a great reduction in the headcount among the companies that are operating in the Web3 environment.

After all the wait, the NFT market has not recovered and the market is still bearish. The Web3 companies are also sailing the same boat as the NFT industry and are busy reducing their headcounts.

Dapper Labs is Laying off Employees

Dapper Labs, a major company behind the creation of a popular NFT marketplace has recently announced the reduction of its employees.

The executives have communicated that they are planning to lay off 22% of their total staff. The officials have cited macroeconomic conditions that have led the company to make a critical decision.

Dapper Labs rose to fame for launching a marketplace for non-fungible tokens dubbed as “NBA Top Shot”. However, the ongoing market downtrend is constantly taking a huge toll on the entire NFT sector.

Even companies such as Dapper Labs have resorted to laying off their employees, in order to cut operational costs.

Statement from Roham Gharegozlou

Roham Gharegozlou, the CEO and founder of Dapper Labs commented on the company’s latest decision. He stated that the last thing that they wanted to do was to lay off employees.

Unfortunately, their company has been badly hit like all other companies within the NFT sector. This has pushed their company into a corner and they are forced to take necessary stops.

If they continue operating with their current headcount, they will not be able to make it through the difficult times.

In order to run their operations for the long term and keep them healthy, it was necessary that they reduced their headcount.

The company aims to keep its communities and business operations strong and healthy. Therefore, it is important to optimize the business and run it by reducing costs as much as possible.

Gharegozlou stated that they are confident that Web3, cryptocurrencies, metaverse, and non-fungible tokens are the future.

Their potential is 1000x and they would continue impacting the mainstream industries. However, the macroeconomic conditions are not getting fixed at all.

They will need to face until all such issues have been resolved and all they can do is wait it out.

Sales Keep Declining

According to the statistics, Dapper Labs recorded a trading volume worth $2.6 million in October 2022. However, in the same month last year, Dapper Labs recorded $40.8 million worth of trading volume for NFTs.