Sorare Restructures Operations by Streamlining Staff
Sorare’s Strategic Move
Fantasy sports platform Sorare recently announced a significant reorganization by laying off 22 employees, which amounts to 13% of its New York office staff. This move is part of Sorare’s strategy to optimize its operations and enhance efficiency.
Centralizing Teams for Improved Collaboration
Nicolas Julia, the co-founder and CEO of Sorare, mentioned that the consolidation primarily impacts the product development team. By centralizing certain teams at its Paris headquarters, Sorare aims to foster better collaboration and communication. This restructuring is crucial as the company continues to enhance its offerings in football, baseball, and basketball fantasy games.
Expansion Plans and Team Growth
While 11 employees from the New York office were asked to relocate to Paris, Sorare intends to fill most of the vacated positions in Paris. Moreover, the company plans to expand its team by hiring over 20 new roles within the next six months. This expansion highlights Sorare’s commitment to maintaining and strengthening its workforce.
Sorare’s Financial Situation and Future Outlook
Although Sorare did not attribute the layoffs to financial reasons, sources suggest that the web3 company, like many others in the industry, faces longer timelines to achieve growth objectives. While Sorare facilitates user transactions through its platform, its primary revenue stream comes from issuing and selling new NFT cards.
Challenges in the Web3 Gaming Sector
Sorare reported a transaction volume of $200 million in 2023 but did not disclose its profitability or remaining runway. Since its last funding round in 2021, Sorare has not secured additional capital. The challenges faced by web3 gaming startups, such as layoffs and funding constraints, reflect the broader difficulties within the sector. Despite these challenges, Sorare remains optimistic and hopes that its restructuring efforts will help navigate through the uncertainties of the web3 landscape.
