Bear market not over yet? Circle announces minor layoffs; Dapper Labs undergoes third round of layoffs within a year

In February of this year, Circle even told The Wall Street Journal that it planned to expand its workforce by 25%.

Circle Announces Minor Layoffs

A spokesperson for Circle told CoinDesk that in order to maintain a strong balance sheet, Circle is now focusing more on the activities and execution of core business, leading to a decision to reduce or terminate investments in non-core businesses and lower operational costs, including minor layoffs.

It was also revealed that Circle has identified new investment areas and will be hiring personnel in key regions in the future.

As of the end of February this year, Circle's CFO Jeremy Fox-Geen explained to the Wall Street Journal that despite the canceled IPO plans, they still expect a 25% increase in staff numbers this year.

Will the new investment area claimed by Circle be the stablecoin market in Japan?

Dapper Labs Implements Third Round of Layoffs in a Year

The CEO of Dapper Labs, Roham Gharegozlou, announced on July 13th via Twitter that 51 outstanding employees have been laid off. He also urged companies in the Web3 space in need of talented individuals to contact him as he will share the list of departing employees.

In an internal memo to employees, he mentioned that the departing employees include both full-time colleagues and contractors, with some transitioning to part-time roles to continue working with Dapper Labs. He emphasized that this move is necessary and correct to ensure the company's lean and efficient operation.

We said goodbye to 51 brilliant colleagues and friends today @dapperlabs – this is the note I sent our team.

We remain fully dedicated to our core communities and committed to building amazing products that push the world forward together.

If you're looking to hire some of the… pic.twitter.com/xwhjZAYLN8

— roham (@roham) July 13, 2023

Roham Gharegozlou explicitly stated in the memo that Dapper Labs has sufficient capital, and through this reorganization, the business has become more streamlined. The cash flow from the Flow blockchain is also enough to sustain operations for several years without the need to sell tokens for short-term funding.

Data shows that the 51 employees represent approximately 12% of Dapper Labs' total workforce of 423.

Prior to this, Dapper Labs had previously laid off 22% (134 employees) in November 2022 and 20% in February 2023.

The Block has also reported extensively on Dapper Labs, indicating that the company leans more towards a business route, spending lavishly on private yacht parties and networking with celebrities to increase exposure for its products, rather than focusing on technical development.

Recap: Dapper Labs CEO accused of extravagant spending, mistreating employees, and focusing on networking with celebrities rather than product development