Ava Labs, the crypto company behind the Avalance blockchain, laid off several employees on Tuesday. According to an X post by the firm’s CEO, Emin Gun, 10% of Ava Labs’ employees were sent home. Gun said his firm would reallocate the funds for paying the salaries of these employees to develop the Avalance ecosystem.
We sent a direct message to Gun on X, asking him to tell us the exact number of employees laid off and how many people retained their jobs, but he has yet to respond.
Ava Labs’ Vice President of Growth and Strategy, Garrison Yang, wrote on X yesterday that employees who worked in the firm’s marketing division were the most affected. A laid-off employee announced his departure from Ava Labs on X while revealing that several others were also sent home.
When one X user asked the employee the reason behind the layoffs, they answered that it was due to a “brutal bear market.” According to the employee, Ava Labs is planning to use the resources to build new products. Another employee affected by the layoffs said on X that he was still shocked by Ava Labs’ decision to send him home.
A former Ava Labs employee @TradingAloha, who worked in the marketing division, wrote on X that his sources had told him the layoffs were part of a wider restructuring plan.
More Firms Announce Layoffs
Last week, another crypto company, OpenSea, announced laying off nearly 50% of its employees. While the exact number of affected employees is still unknown, the co-founder of the NFT marketplace, Devin Finzer, said on X that funds meant to cover salaries will be used to build a revolutionary version of OpenSea. To help affected employees transition, OpenSea said each will receive a four-month severance pay.
Several other crypto companies have had to part ways with their employees since the start of the year, with many blaming the bear market. A few months ago, NFT firm Dapper Labs let go of 20% of its workforce. At the time, the company’s CEO, Roham Gharerozlou, said the move was necessary to keep Dapper Labs in business.
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