Ava Labs, the team developing the Avalanche blockchain, announced that it will lay off 12% of its staff, a decision made to strategically reallocate its resources.
CEO and founder Emin Gün Sirer confirmed the layoffs on Nov. 7, after several former employees announced their firings on X.
Sirer said the move is a strategic reallocation of resources aimed at promoting the growth of Ava Labs and the broader Avalanche ecosystem.
Gün Sirer acknowledged the challenges posed by the bear market, but reiterated that Ava Labs is well-positioned with ample runway and resources.
According to the data, the number of employees was previously 335. LinkedIn Data shows that the layoffs have affected about 40 people.
Garrison Yang, Vice President of Growth and Strategy, Ava Labs, suggestion The marketing department has borne the brunt of the layoffs.
Those affected include Zach Manafort, a former member of the Gaming Growth Marketing team who has been actively involved in the Avalanche community since 2020.
Manafort expressed his surprise at the layoffs in an article published in X on October 6, believing the company was on the cusp of a new phase of growth.
Brandon Suzuki, another former member of Ava Labs’ marketing team, also admitted his involvement in the Oct. 6 layoffs.
Previous Layoffs in the Cryptocurrency Sector
Despite the sharp rise in cryptocurrency markets this year, things have not been all plain sailing for cryptocurrency companies, who still face challenging liquidity constraints.
On November 3, the NFT market OpenSea also carried out a similar “reorganization” work, resulting in about 50% of its employees being laid off. This is a significant shift from less than two years ago, when OpenSea was valued at a whopping $13.3 billion following a Series C round of funding.
Yuga Labs, known for its Bored Ape Yacht Club (BAYC) NFT, announced a similar cut last month. The company is currently pouring 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 tokenization projects, announcing US$50 million Such development initiatives were taken earlier this year.