Ava Labs, the company behind the Avalanche blockchain network, has announced a significant downsizing of its workforce. The layoffs, which took place on Monday, have been confirmed by several employees who were directly affected.
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Downsizing Ava Labs
Ava Labs has become the latest in a string of crypto startups to feel the pinch of the enduring bear market. According to inside sources, the cuts spanned across various departments, notably within communications and marketing teams.
Emin Gün Sirer, founder and CEO of Ava Labs, publicly addressed the downsizing via a tweet, stating that the decision to reduce the workforce by 12% was a strategic move aimed at reallocating resources. Sirer emphasized the company’s commitment to refocusing efforts on the growth and advancement of the Avalanche ecosystem.
The strategic realignment comes as Sirer acknowledged the challenges posed by the current bear market. He stressed that despite the setbacks, Ava Labs is in a strong position with “significant runway and resources,” which it plans to invest in the future of the Avalanche network.
Company morale is down
The sweeping layoffs have evidently taken a toll on the company’s morale. Garrison Yang, VP of Growth and Strategy at Ava Labs, expressed on Twitter that the reductions had a considerable impact, especially on the marketing division. Echoing this sentiment, one of the employees, who preferred to remain anonymous, expressed shock, noting that the extent of the layoffs had been unexpected.
Despite the lack of clarity on whether technical teams were affected, the widespread nature of the layoffs suggests that the impact of the crypto recession is being felt deeply within Ava Labs. This downturn has left many employees insecure about their jobs until the market recovers.
The former employees are now piecing together the broader picture, understanding these layoffs as part of Ava Labs’ strategy to navigate through the crypto winter. This restructuring aims to streamline the company’s focus and possibly pivot to new strategies for survival and growth.
The pattern of layoffs is not exclusive to Ava Labs, as demonstrated by the recent downsizing at OpenSea. The leading NFT marketplace cut its workforce by half last week, a significant pivot for a company that had reached a staggering $13.3 billion valuation less than two years ago.
The crypto industry continues to grapple with a recession that shows little sign of abating. However, despite the layoffs and unfavorable macroeconomic factors, Bitcoin, NFTs, and certain altcoins have made a recent resurgence.
According to data from Forkast Labs, the NFT 500 Index indicates a potential bottom was found on October 21. Since then, the NFT market has rebounded by over 7%, showing continuous bullish momentum.