Layoffs, business restructuring, strategic adjustments, where is Yuga Labs headed?

Author: Loopy, Odaily Planet Daily

Last week, the leadership team of Yuga Labs made a significant decision that will impact the project after discussions in New York. Yuga Labs stated on their official Twitter that the team will undergo restructuring to better focus on core priorities, but "these changes are necessary for the development of the organization."

Layoffs and Team Restructuring

The crypto industry is closely tied to market conditions. Layoffs have become a standard feature for almost every crypto company during a bear market. Yuga Labs, like others struggling in the bear market, has begun the anticipated layoffs.

The team stated that they brought "some difficult news" to everyone, as the entire company will eliminate many roles, and this restructuring will "affect many colleagues."

For those who are being let go, Yuga Labs expressed their commitment to providing all necessary support, including generous severance packages, COBRA insurance, and assistance in finding new job opportunities. Meetings will be held today with affected employees in the U.S., involving discussions with impacted employees, their department heads, and the HR team.

A less "Web3" phenomenon is that off-chain practitioners are ultimately citizens of various countries in a legal sense, and layoffs naturally have national distinctions. Yuga Labs pointed out that "today's restructuring affects U.S. team members, and we are actively reviewing the impact on the international team." The official statement did not detail the differences between the U.S. team and the international team regarding the restructuring, and we can only wait for further updates. However, the official announcement also indicated that more details will be disclosed in the upcoming all-hands meeting.

Is There Hope for Meebits and 10 KTF?

Among the layoffs, the brands most affected may be 10 KTF and the acquired Meebits.

Official information indicates that the teams for the NFT projects Meebits and 10 KTF will be restructured. This also means that these two NFT projects will likely struggle to have dedicated teams, and the collections from these two series may suffer significant setbacks.

After the restructuring, the teams for Meebits and 10 KTF will become part of Otherside.

Although Yuga Labs stated, "This does not mean that the creative narrative opportunities for the brands have disappeared; there is still much to be done in Otherside," the brand value of these two series will still be affected.

Regarding the future of these two NFT series, Yuga Labs stated, "Meebits is a series designed for the metaverse, and the 10 KTF store will ultimately have a permanent home."

How Will the Future Develop?

Yuga Labs plainly explained that the team will undergo restructuring to better focus on "core priorities." So what are these priorities?

In the disclosed information, the team provided three directions:

1. Committed to expanding the community, growth, and brand interaction;
2. Fully implementing the Otherside strategy, including unique initiatives in gaming, entertainment experiences, and interactive social connections;
3. Concentrating internal development work on a few core matters while continuing to build complementary long-term partnerships.

The future plans for its two major communities were also outlined.

BAYC Community: The team will support the expansion of "Made by Apes" and other projects aimed at enhancing member capabilities. The team understands the importance of the "early BAYC atmosphere" and is committed to maintaining that energy while continuing to cultivate the community's culture and creativity.

In terms of specific implementation, ApeFest Hong Kong will be held in the coming weeks. Additionally, an important, multifunctional, and ongoing gaming experience will be brought to users in 2024.

CryptoPunks Community: The team will invest resources to solidify and celebrate the series' crypto art legacy through education (including an upcoming book). They will improve and simplify the Punks application and continue to create engaging experiences.

Otherside Will Be the Development Focus

The teams for Meebits and 10 KTF have been merged into Otherside, which will also be a key focus for future development. The official statement indicated that the Otherside team will establish new gaming experiences in 2024 through third-party partnerships.

The Otherside platform is expected to be showcased in 2024. Prior to this, the development of Otherside has been relatively undisclosed. The official statement mentioned that to address this issue, regular development updates will begin in the coming weeks.

Moreover, more partnerships will be explored. Recently, Yuga Labs announced stable partnerships with Hadean, Bad Rhino, OMA 3, Accelbyte, Faraway, and others. In the future, they will continue to establish brand partnerships, including collaborations with Gucci, A Bathing Ape, and others, to expand new engagement opportunities within the community they serve.

Has the Path Forward Narrowed?

An interesting detail is that the official stated, "Partnerships are crucial for our rapid and effective growth, allowing us to focus on what we do best." Why does Yuga Labs say this?

According to their own explanation, Yuga Labs' work in the past has been too scattered, making it difficult to concentrate on important "core matters."

In the past six months, Yuga has attempted to establish a clear vision, focusing the team on "creative storytelling" and "community building," stating, "This is the core of Yuga."

However, Yuga Labs' large and complex business, along with numerous projects, has spread the team too thin, requiring "execution expertise beyond our core competencies." This has set the stage for Yuga Labs' restructuring today. For example, the official candidly acknowledged the shortcomings in their gaming projects—"especially in terms of game execution, we shouldn't have done it this way."

After careful consideration, Yuga Labs' core personnel believe that the team has taken on too much work, making it difficult to maintain focus. Yuga Labs should benefit from more third-party resources. In the future, the team's work will be more concentrated on a few "key initiatives," focusing on "things that only Yuga can do."

According to NFTGO data, the current floor price for BAYC is 26.25 ETH, which has continued to decline over the past year, dropping 80% compared to its ATH price (128 ETH). The repeated issuance of new gameplay has faced criticism from the community, and the governance mechanism of APE has been publicly criticized multiple times by large holders. The operation of other IPs acquired by Yuga has also not shown highlights. Can this strategic adjustment put Yuga Labs' vast NFT empire back on track? The NFT market has been disappointed multiple times but remains full of expectations.