Blockchain technology company Yuga Labs has revealed a significant restructuring effort that involved layoffs in different departments. This move coincided with a growing emphasis on venturing into the metaverse, indicating a notable change in the company’s strategic direction.
Yuga Labs CEO Daniel Alegre explained the difficult choice to reduce positions throughout the company in a letter, stressing the importance of simplifying operations and concentrating on fundamental strengths. He looked back on his six-month tenure at Yuga Labs, underlining his dedication to creative storytelling and community building, which he views as the core of Yuga’s mission.
“When I joined Yuga six months ago, my first priority was to lay out a clear vision that focused our team on the creative storytelling and community building that is at the core of Yuga. I also went on a listening tour to understand every aspect of our business and ensure that the makeup of our team and our projects were aligned with our goals. I realized very quickly that there were a number of projects that, while well-intentioned, either spread the team too thin or required execution expertise beyond our core competencies.”
Prioritising the metaverse
The CEO recognised the company’s accomplishments, including successful projects like Dookey Dash, Twelvefold, Made by Apes, and partnerships with renowned brands like Gucci and BAPE. He also highlighted challenges, particularly in gaming, underscoring the importance of forming external partnerships to improve the company’s offerings.
“Alongside these wins, there have been a few rocky rollouts, particularly in our gaming execution, because we learned along the way that we weren’t optimized to build and manage everything in-house, nor should we be. We also know we need to make greater progress with the development of Otherside,” said Alegre.
According to the CEO, Yuga Labs will focus on three key aspects moving forward:
- Communities and engagement with brands.
- Go all-in on its Otherside strategy which encompasses gaming, entertainment experiences, interactive social connections, and other initiatives.
- Build complementary long-term partnerships.
He went on to emphasise the importance of the metaverse, with Meebits being designed specifically for it. The Otherside team plans to introduce new gaming experiences through partnerships with third parties and has earmarked 2024 as a notable year for showcasing the Otherside platform.
Alegre also touched on the company’s commitment to transparency and mentioned that they would be providing regular development updates in the coming weeks. He also stressed the significance of strategic partnerships, including collaborations with Hadean, Bad Rhino, OMA3, Accelbyte, and Faraway, among others.
Employees affected by the layoffs have been told they would receive ample support, including severance packages and assistance in finding new job opportunities.
Isa Muhammad is a writer and video game journalist covering many aspects of entertainment media including the film industry. He's steadily writing his way to the sharp end of journalism and enjoys staying informed. If he's not reading, playing video games or catching up on his favourite TV series, then he's probably writing about them.
