Yuga Labs, the company behind the renowned Bored Ape Yacht Club (BAYC) non-fungible token (NFT) project, has recently concluded a restructuring phase. The restructuring was undertaken in response to the ongoing challenges in the NFT industry, and the company’s CEO, Daniel Alegre, confirmed the completion of this process.
On October 17, Daniel Alegre shared the news of Yuga Labs’ restructuring via social media, specifically on X (formerly Twitter). The restructuring was initially announced in early October, and Alegre mentioned that the company is now ready to move forward with its adjusted team configurations. The primary focus of this revamped structure will be the development and execution of “Otherside,” Yuga Labs’ ambitious metaverse project.
I want to address some of the feedback the company and I have been receiving from many of you recently.
— Daniel Alegre (@dalegre) October 18, 2023
I respect the relevant, pointed feedback as I know it comes from a place of wanting to see improvements in our Yuga communities.
First, I will start with sharing some advice…
Alegre emphasized the technical and creative complexity of building an immersive metaverse platform, highlighting the challenges that come with this endeavor. He expressed the company’s strong commitment to Otherside, emphasizing its significance in their vision:
"Otherside is a very important bet for Yuga, and when our creative team brought the concept for Meetropolis up to my leadership team, making it a tentpole experience for Otherside felt like a slam dunk."
Yuga Labs co-founder Greg Solano had previously announced the restructuring effort on October 6. The motivation behind this move was to ensure the company’s long-term success by making necessary changes to its structure and priorities. Although the exact number of employees affected by the restructuring was not disclosed, Yuga Labs still maintains a workforce of over 120 employees.
During the restructuring process, Alegre reassured that his top priority was to treat departing employees with respect and gratitude. The transition package offered to those leaving the company includes generous severance packages, Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage, and support in finding new job opportunities.
Alegre also acknowledged the challenging environment not only within the NFT industry but also in the global economy. The restructuring primarily impacted U.S. team members, with ongoing assessments of its effects on international teams.
As for the legal front, the recent restructuring news coincides with a U.S. appeals court expressing skepticism on October 16 about an attempt to dismiss Yuga Labs’ trademark lawsuit against artist Ryder Ripps, related to his copies of Yuga’s BAYC NFTs. Furthermore, in August 2023, a group of BAYC investors initiated a class-action lawsuit against Yuga Labs and fine arts auction house Sotheby’s. This lawsuit alleged that Sotheby’s had assisted Yuga Labs in the deceptive promotion of the NFT collection.
Yuga Labs, while facing legal challenges and industry complexities, remains dedicated to realizing its metaverse vision through the Otherside project. The restructuring is a strategic move to adapt to evolving circumstances and ensure the company’s long-term success in the dynamic NFT space.
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