Sorare Decides to Shift More Employees from Its New York Office to Paris
Sorare, a web3-enabled fantasy sports platform, recently laid off 22 employees from its New York office in a move to concentrate certain teams at its Paris headquarters for better communication and efficiency, as stated by a source familiar with the situation speaking to TechCrunch.
“As we plan for our next stage of growth, Sorare has made the decision to centralize some of our functions at our Paris HQ,” said Nicolas Julia, the co-founder and CEO of Sorare, in an email to TechCrunch. “This primarily affects our product development team, as we believe that bringing the team together in Paris will enhance collaboration as we continue to develop top-notch products for football, baseball, and basketball.”
An additional 11 employees from the New York office were encouraged to relocate to Paris, and Sorare plans to fill most of the vacated positions in Paris while aiming to hire over 20 new roles in the next six months, according to Julia.
Although the layoffs were not financially motivated, the time horizon for Sorare to achieve its growth targets is longer than initially anticipated, much like other web3 companies. Sorare generates revenue mainly through issuing and selling new NFT cards, with user transaction volume reaching $200 million in 2023, as per a source familiar with the matter. The company did not disclose its profitability or remaining runway.
While Sorare has preserved its presence in New York, maintaining teams for U.S. customer engagement and brand partnerships with leagues like MLB and NBA, the dwindling investor interest in web3 has affected the company and its peers in the industry. Web3-focused companies only raised $7 billion in 2023, down 74% from the previous year, while overall venture funding declined by 38% during the same period.
Web3 gaming companies, in particular, have faced challenges, with some experiencing layoffs amid the market’s contraction. Mythical Games and Dapper Labs are examples of web3 gaming startups that have gone through multiple rounds of layoffs due to the industry’s struggles.
Despite these hurdles, Sorare has an active community and dedicated third-party media following, which could be instrumental in navigating the ongoing challenges in the web3 sector. The company’s recent reorganization could help it weather the storm.
