Sorare shifts staff to Paris amid layoffs

Sorare clarified that it is not completely closing its New York office

Fantasy sports platform Sorare, which operates in the realm of NFTs and web3 technology, recently made a significant move by laying off 13% of its staff, amounting to 22 employees based in its New York office.

This decision, according to a source familiar with the matter, is part of Sorare's strategy to streamline its operations, with a focus on centralizing certain teams at its Paris headquarters to enhance communication and efficiency.

Nicolas Julia, the co-founder and CEO of Sorare, explained to technology industry media outlet TechCrunch that the consolidation primarily affects the product development team.

By bringing them together in Paris, the company aims to foster better collaboration as it continues to enhance its offerings in football, baseball, and basketball fantasy games.

Additionally, 11 employees from the New York office were requested to relocate to Paris. However, Sorare intends to fill most of the vacated positions in Paris and plans to expand its team by hiring over 20 new roles within the next six months.

Despite the layoffs, Sorare clarified that it is not closing its New York office entirely. Certain teams, particularly those engaging with US customers and managing partnerships with sports leagues like MLB and NBA, will remain operational in New York.

Sorare launched its second NBA fantasy game season in October 2023, boasting exclusive licensing from the NBA and NBPA. With new gameplay features and dynamic card designs, Sorare aimed to enhance the fantasy experience for its users.

While financial motivations were not cited as the driving force behind the layoffs, sources indicate that like many other web3 companies, Sorare's timeline for achieving growth goals is longer than initially anticipated.

Although Sorare facilitates transactions between users through its platform, its primary revenue stream comes from issuing and selling new NFT cards.

Sorare reported a transaction volume of $200 million in 2023, but the company did not disclose its profitability or remaining runway. Since its last funding round in 2021, Sorare has not secured additional capital, and investor interest in web3 companies, in general, has waned significantly.

The struggles faced by web3 gaming startups, including layoffs and funding challenges, underscore the broader difficulties within the sector. Despite these challenges, Sorare maintains an active community and hopes that its restructuring efforts will help navigate through the uncertainties of the web3 landscape.

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Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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