Sorare Lays Off 13% of Staff in New York Office Restructuring

Sorare, the fantasy sports platform utilizing web3 technology, has initiated a workforce reduction affecting 22 employees at its New York office. The decision is part of a broader organizational shift aimed at consolidating product development functions at the company’s headquarters in Paris.

Operational Shift to Paris

According to CEO and co-founder Nicolas Julia, the move is intended to foster tighter collaboration within the product team. “As we plan for our next stage of growth, Sorare has made the decision to centralize some of our functions at our Paris HQ,” Julia stated via email. He noted that the centralization will allow the team to work more effectively across the company’s basketball, baseball, and football offerings.

The restructuring includes the following changes to the New York operations:

• 22 employees were laid off in February.
• 11 additional staff members in New York were offered the opportunity to relocate to the Paris office.
• The company plans to fill most of the vacated roles in Paris, with a hiring target of over 20 new positions in the coming six months.

Sorare clarified that it is not closing its U.S. presence entirely. The New York office will remain operational, maintaining teams focused on U.S. customer relations and ongoing brand partnerships with major leagues, including the NBA and MLB.

Market Context for Web3 Gaming

While the company frames the layoffs as a strategic reorganization rather than a result of financial distress, the broader sector faces significant headwinds. Web3 gaming startups have struggled to reach growth milestones as quickly as initially projected. Data from Crunchbase indicates that investment in web3 startups fell to $7 billion in 2023, a 74% decline compared to the previous year. This reflects a wider 38% drop in global venture funding during the same period.

Other notable companies in the space, such as Mythical Games and Dapper Labs, have also undergone multiple rounds of layoffs as investor enthusiasm for web3 gaming has waned.

Financial Position

Sorare, which reached a $4 billion valuation following a $680 million Series B round in 2021, has not raised additional capital since. While the company did not disclose its current runway or profitability status, it reported $200 million in user transaction volume in 2023. Despite the market cooling, Sorare maintains an active user base, including a community of nearly 13,000 members on Reddit dedicated to its fantasy sports competitions.