Web3-enabled fantasy sports platform Sorare has made the decision to centralize some of its functions at its Paris headquarters, resulting in the layoff of 22 employees based in its New York office in February. The move is aimed at improving communication and efficiency within the company, according to a source familiar with the matter.
Key Takeaway
Sorare reorganizes its operations, centralizing certain functions at its Paris headquarters and laying off employees in its New York office as part of its plan for the next stage of growth. The company faces challenges in the evolving web3 landscape, but it remains committed to its active community and product offerings.
Centralization at Paris HQ
Nicolas Julia, the co-founder and CEO of Sorare, stated that the decision to centralize certain teams at the Paris headquarters is part of the company’s plan for the next stage of growth. The reorganization primarily affects the product development team, with the aim of enhancing collaboration and effectiveness in building products across football, baseball, and basketball offerings.
Impact on New York Office
While 11 employees in the New York office were asked to relocate to Paris, Sorare clarified that it is not shutting down its New York office. The company plans to retain certain teams in New York, particularly those working with U.S. customers and on U.S. brand partnerships with leagues such as the MLB and NBA.
Financial Considerations and Market Trends
Although the layoffs were stated not to be financially driven, Sorare, like many other web3 companies, faces a longer time horizon to reach its growth goals than originally anticipated. The company’s user transaction volume reached $200 million in 2023, but it has not disclosed its profitability or remaining runway.
Challenges in the Web3 Sector
Web3 companies, particularly those focused on gaming, have encountered challenges in gaining meaningful traction. The declining interest from investors in the web3 sector has been evident, with a significant drop in venture funding for startups in the category in 2023.
Outlook for Sorare
Despite the reorganization and challenges faced by web3 companies, Sorare maintains an active community and dedicated third-party media coverage. The company’s future in the evolving web3 landscape remains to be seen, but the reorganization is a strategic move in response to market dynamics.
