These are tough times for Ava Labs, which manages the Avalanche (AVAX) platform. The company is letting go of a large number of its employees, in the face of a bear market that has been in place for many months. Here’s an update on the situation and the difficulties facing the sector
Ava Labs is laying off a large part of its workforce
Emin Gün Sirer, founder and CEO of Ava Labs, confirmed last night that the company had shed 12% of its workforce. He justifies this choice modestly by a reallocation of resources:
“This reduction applies to 12% of Ava Labs, and allows us to reallocate resources to focus on growing our firm and the Avalanche ecosystem. “
Today we parted ways with some of our Ava Labs team members. We are no longer a 12 person startup, but we strive to capture the speed and energy of a small, nimble team.
This reduction in force affected 12% of Ava Labs, and allows us to reallocate resources to double down on the…
– Emin Gün Sirer (@el33th4xor) November 7, 2023
Emin Gün Sirer confirms that the bear market, which has been affecting the entire cryptocurrency markets since 2022, is to blame. He also affirms that Avalanche wishes to continue its development for years to come, and that Ava Labs nevertheless has financial leeway that is intact.
Crypto companies face the bear market
According to one of the company’s marketing strategy managers, who has also been made redundant, large sectors of Ava Labs are affected by these layoffs, but the exact number of employees who have left is not known at this stage. As a reminder, Avalanche ranks high among the major cryptocurrencies, with a capitalization that currently stands at $4.6 billion.
Signs of tension are mounting, however, in companies that are heavyweights in the ecosystem. A few days ago, we learned that the giant OpenSea had laid off half its staff. Last month, Chainalysis shed 15% of its staff. And Yuga Labs, the company that manages major NFT collections such as Bored Apes, was also forced to restructure.
All of which confirms the financial difficulties in the ecosystem at this stage, and why upward price movements have been greeted with such relief in recent weeks. Will the bear market last much longer? It’s hard to say at this stage.
