BAYC Announces Layoffs in Another Sign of Suffering NFT Business

Bored Ape Yacht Club, (BAYC) creator Yuga Labs has announced layoffs as the NFT market continues to falter. This marks the second round of layoffs for the Web3 company in under a year. In a memo, CEO Greg Solano admitted that Yuga Labs has “lost its way” due to excessive bureaucracy. The company aims to refocus on its core competencies and execute projects with greater precision.

Yuga Labs, the powerhouse behind the wildly popular Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFT collections, is grappling with the downturn of the broader NFT market. Data from CryptoSlam reveals that BAYC sales volume has slumped, placing the collection in 6th place over the past 30 days. At the time of writing, the floor price for a BAYC NFT has dipped below its 2021 levels.

BAYC’s Yuga Labs Prioritizes Gaming and Metaverse

Data from CryptoSlam indicates a decline in Bored Ape Yacht Club sales, with the collection dropping to the sixth position in NFT sales rankings over the last 30 days. Furthermore, the floor price of BAYC NFTs has fallen to 12.5 ETH, a level not seen since its launch in 2021. This signals broader challenges for the once-booming NFT market.

In his memo, in addition to BAYC announcing layoffs, Solano emphasized the urgency of prioritizing a new path focused on gaming experiences. He highlighted recent initiatives like the spinout of HV-MTL and Legends of Mara games as evidence of this strategic shift toward the metaverse. Certainly, the company’s pivot away from a primary focus on NFTs suggests an attempt to adapt to evolving market trends and consumer preferences.

The studio celebrated its third anniversary on April 23 with the launch of BAYC 3D avatars, further solidifying its transition towards gaming and metaverse experiences like Otherside.

Ongoing Restructuring Efforts

Notably, this latest restructuring marks the second for Yuga Labs. In October 2023, the company also laid off staff, emphasizing the need for greater progress on Otherside and a renewed focus on core strengths.

The challenges Yuga faces are not entirely new. The company has been grappling with them for some time.

Looking ahead, Solano’s return as CEO is marked by a renewed commitment to a more crypto-native operational focus. Certainly, the restructuring aims to breathe new life into the BAYC team. By granting them more autonomy, Yuga Labs empowers them to flourish in a fast-changing digital environment. This shift prioritizes gaming and metaverse development, positioning Yuga Labs at the forefront of the next generation of digital entertainment. Ultimately, they hope to rediscover the spark that once made them a champion of the Web3 world.