Yuga Labs, the creator behind the popular Bored Ape Yacht Club (BAYC) nonfungible token (NFT) project, has completed its restructuring efforts, aligning the company’s resources toward its ambitious metaverse project, Otherside. CEO Daniel Alegre announced the finalization of the restructuring, emphasizing the company’s commitment to building an immersive metaverse platform and assuring support for departing team members.
Yuga Labs initiated its restructuring process in early October, acknowledging the evolving challenges within the NFT industry. Co-founder Greg Solano, in an announcement on October 6, stated that the restructuring aimed to position the company for long-term success. While specific details regarding the number of employees affected were not disclosed, the company remains a formidable force in the industry with over 120 employees.
Alegre highlighted the importance of this restructuring, emphasizing the company’s renewed focus on their metaverse project, Otherside. This ambitious endeavor, launched in March 2022, envisions a gamified and interoperable metaverse experience.
In his announcement, Alegre underscored the complexity of developing an immersive metaverse, citing both technical and creative challenges. He expressed confidence in Otherside’s potential, stating,
“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.”
This strategic shift reflects the company’s determination to navigate the dynamic landscape of the NFT and metaverse industries while delivering innovative experiences to its community.
Yuga Labs’ metaverse drive and employee welfare focus
Throughout the restructuring process, Yuga Labs prioritized the well-being of its departing team members. Alegre assured that those leaving the company would be treated with respect and gratitude. The transition package offered by Yuga Labs includes generous severance benefits, Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage, and assistance in finding new job opportunities.
Alegre acknowledged the challenging times faced not only by the industry but also by the global economy, reflecting the company’s commitment to handling the transition with sensitivity.
The announcement coincides with ongoing legal challenges for Yuga Labs. A U.S. appeals court, on October 16, expressed skepticism about the attempt to dismiss Yuga Labs’ trademark lawsuit against artist Ryder Ripps over his copies of BAYC NFTs. This legal battle highlights the company’s dedication to protecting its intellectual property rights in the ever-evolving world of NFTs.
In addition to the trademark lawsuit, Yuga Labs faced a class-action lawsuit in August 2023, where a group of BAYC investors alleged that Yuga Labs and fine arts auction house Sotheby “deceptively promoted” the NFT collection. These legal matters are being closely monitored by industry observers.
