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Ava Labs, the primary developer behind the Avalanche blockchain, recently announced a significant reduction in its workforce, affecting approximately 12% of its employees. The decision to downsize came as a response to the challenges posed by the current bear market conditions, according to Emin Gün Sirer, the founder and CEO of Ava Labs.
In a post shared on the company’s official platform, Sirer acknowledged the difficulties of navigating the crypto space during a bear market but expressed optimism about the future.
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
Impact On The Ava Labs Team
Ava Labs currently boasts a workforce of 335 employees, as indicated on their LinkedIn profile, which implies that roughly 40 individuals within the organization were impacted by the layoffs. While specific details about which departments were affected are limited, Garrison Yang, Ava Labs’ vice president of growth and strategy, hinted that a significant portion of the layoffs might have originated from the marketing team.
The move to trim their workforce was met with mixed reactions, and former employees have started to share their experiences. For instance, in a post on a community forum dated Oct. 6, Zach Manafort, a former member of the game growth marketing team, disclosed that he was among those laid off. Despite his active involvement in the Avalanche community since 2020, Manafort found himself among the casualties of the downsizing.
It looks like my time at @AvaLabs has come to its end. Despite the recent layoffs, my time here has been filled with invaluable experiences and growth.
As I transition forward, I am open to explore opportunities in marketing or operations.
My passion for these fields combined…
— Trading Aloha 🔺 (@TradingAloha) November 6, 2023
AVAX market cap currently at $4.513 billion. Chart: TradingView.com
Expanding Business Horizons
These developments occurred shortly after Ava Labs made an announcement last month about expanding its business operations in India. The company hired two former employees from Polygon and OKX, marking its first-ever full-time hires based in India. The decision was seen as part of Ava Labs’ broader strategy to strengthen its presence and offerings in the Indian market.
Remarkably, despite the internal restructuring and the news of layoffs, the price of the Avalanche token (AVAX) remained relatively unfazed. At the time of the announcement, AVAX was trading at $12.81 according to CoinGecko, showing a 24-hour increase of 2.4% and a seven-day rally of 10.2%. The resilience of AVAX in the face of these developments is a testament to the broader confidence in the Avalanche ecosystem.
The decision to downsize the workforce is not unique to Ava Labs in the crypto industry, as many organizations have been forced to adapt to the volatile market conditions and evolving regulatory landscape. However, Ava Labs remains optimistic about its ability to continue advancing the Avalanche ecosystem in the years to come. The company cited its substantial runway and available resources as key assets that will be dedicated to this mission.
It will be interesting to see how Ava Labs navigates the challenges and opportunities that lie ahead, especially in light of these recent personnel changes.
Featured image from Freepik