Yuga Labs, the $4 billion startup responsible for the Bored Ape Yacht Club NFT collection, is undergoing significant changes. In response to evolving trends in the NFT market, the company has initiated a restructuring process, resulting in layoffs affecting its U.S.-based employees.

This move apparently follows an assessment of Yuga Labs' internal operations, and it aims to position the company for future success by optimizing its core competencies. The driving force behind this shift is Yuga Labs CEO Daniel Alegre, who took the helm after transitioning from Activision earlier this year.

While the exact number of employees impacted by these layoffs remains undisclosed, Alegre has clarified that the restructuring is currently limited to the U.S.-based workforce. The fate of international teams within the organization is still under evaluation.

Co-founder Greg Solano weighed in on these developments, acknowledging the difficulty of parting ways with dedicated team members. He emphasized that these changes are essential to ensure the company's continued viability, especially considering Yuga Labs' prior expansions.

Solano's sentiments echo those of CEO Alegre, who pointed out the need for more precise execution. Alegre cited both successful projects, such as the Dookey Dash game and generative art pieces via Bitcoin Ordinals, and areas where improvements are needed, particularly in web3 gaming.

One focal point for Yuga Labs in adapting to the evolving landscape is its upcoming metaverse game, Otherside. The company has actively pursued technical and creative partnerships and made a strategic investment in spatial computing startup Hadean to strengthen Otherside's development.

Alegre underscored Yuga Labs' commitment to the Otherside strategy, announcing that all ongoing digital content from the company will be integrated into the metaverse platform. Furthermore, teams associated with the NFT avatar project Meebits and the 10KTF digital apparel project will be incorporated into Otherside, streamlining operations.

Regarding the relatively low profile of Otherside's development, Alegre assured stakeholders that more updates would be forthcoming. He also acknowledged the challenges faced not only by the crypto industry but also by the broader global economy.

Yuga Labs first gained prominence in early 2021 with the launch of the Bored Ape Yacht Club, a notable Ethereum NFT profile picture project. Despite initial success, recent shifts in the NFT market, coupled with declining Bored Ape and ApeCoin prices, have prompted Yuga Labs to streamline operations for a sustainable future.

As Yuga Labs navigates these changes and adapts to the evolving NFT industry, its restructuring efforts will be closely monitored by the crypto community and the wider tech sector. The company's ability to pivot effectively in response to market dynamics will be pivotal for its long-term success.