Web3 Gaming Company Sorare Cuts NY Staff, Aims To Boost Paris Operations

In the face of a tough environment for web3 gaming, digital fantasy sports platform Sorare has decided to lay off 22 members of its New York team. The move is part of a strategic shift to centralize its operations in Paris.

What Happened: As detailed by TechCrunch, Sorare’s layoffs took place in February, primarily impacting teams the firm aims to consolidate in its Paris base. The objective behind this strategy is to promote better communication and operational efficiency.

Nicolas Julia, Sorare’s co-founder and CEO, explained, “As we plan for our next stage of growth, Sorare has decided to centralize some of our functions at our Paris HQ.” Julia expressed the company's belief that bringing the product development team together in Paris would enhance their productivity.

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Moreover, eleven staff members in New York were given the option to relocate to Paris. Predominantly, the roles made redundant in New York will be replenished in Paris, with over 20 new hires projected within the coming six months.

Despite the downsizing, Sorare will maintain its New York office to serve U.S. clients and handle U.S. brand partnerships.

These layoffs were not instigated by financial concerns. However, it is reported that the startup‘s growth trajectory is extending beyond its initial forecast.

Sorare last raised capital in a 2021 Series B funding round, securing $680 million and pushing the firm’s valuation to $4 billion. Yet, as the fascination with web3 companies cools down, Sorare, along with numerous others in the sector, is finding it tough to draw in investors.

Why It Matters: This staff reduction signifies the ongoing challenges faced by web3 gaming companies like Sorare in a fluctuating market. It highlights the struggle to attract investors and the need for operational efficiency in a competitive landscape. The centralization of operations may indicate a strategic shift for Sorare, emphasizing the importance of cohesion and communication amidst sectoral challenges. Despite the hurdles, the company’s decision to keep its U.S. presence underscores its commitment to its customer base and brand partnerships in the region.

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