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Ava Labs, the team developing the Avalanche blockchain, has announced a 12% reduction in its workforce, attributing the decision to the strategic reallocation of its resources.
The company’s CEO and founder, Emin Gün Sirer, confirmed the layoffs on November 7, following announcements by several former X employees that they had been laid off.
The move, according to Sirer, is a strategic reallocation of resources aimed at driving the growth of both Ava Labs and the broader Avalanche ecosystem.
Gün Sirer acknowledged the challenges that bear markets present, but reiterated that Ava Labs is in a strong position, equipped with ample runway and resources.
With a staff that previously amounted to 335 people, according to LinkedIn According to data, the layoffs have affected approximately 40 people.
Garrison Yang, vice president of growth and strategy at Ava Labs, He suggested that the marketing department was the most affected by personnel reductions.
Among those affected was Zach Manafort, a former member of the game’s growth marketing team, who had been actively involved with the Avalanche community since 2020.
In an October 6 post on X, Manafort expressed surprise at the layoffs, believing the company was on the cusp of a new phase of growth.
Brandon Suzuki, another former member of Ava Labs’ marketing team, also acknowledged that he had been part of the Oct. 6 layoffs.
Previous layoffs in the crypto space
Despite a significant rally in cryptocurrency markets this year, all is not well for cryptocurrency companies, which still face difficult liquidity constraints.
On November 3, nft marketplace OpenSea also engaged in a similar “restructuring” effort, resulting in the layoff of approximately 50% of its staff. That’s a significant shift from less than two years earlier, when OpenSea earned a formidable $13.3 billion valuation after a Series C funding round.
Yuga Labs, known for Bored Ape Yacht Club (BAYC) NFTs, similarly announced cuts last month. The company is now channeling its efforts into Otherside, a gamified metaverse project that combines gaming, entertainment and social interaction under the strategic direction of Eric Reid and his team.
Ava Labs has also been actively pursuing tokenized projects, having declared a $50 million initiative for such developments earlier this year.
