Fanatics-owned Candy Digital has laid off more than a third of its workforce of roughly 100 employees.
The NFT platform — which operates independently from Fanatics — was valued at $1.5 billion in October 2021 following a $100 million Series A funding round co-led by New York-based VC firm Insight Partners and Softbank Vision Fund 2.
- Candy Digital is also backed by entrepreneur and VaynerMedia CEO Gary Vaynerchuk.
- The platform is the official NFT collectibles partner of MLB and MLB Players Inc.
- In January, it launched a secondary marketplace for officially licensed MLB NFTs.
- The marketplace generated $2.7 million in sales during its first weekend.
Candy Digital’s layoffs are the byproduct of a tech industry that has struggled to drive profits at the end of 2022 due to the recent decline in cryptocurrency and ongoing inflationary pressures.
Earlier this month, Dapper Labs — the creator of NBA Top Shot — reduced its workforce by 22%. The company, which had approximately 600 employees before the layoffs, deemed the cuts to be “necessary for the long-term health of our business and communities.”
In March, Fanatics announced a $1.5 billion funding round valuing the company at $27 billion.
The round was led by the NFL, which invested $320 million in fresh capital in Fanatics — a company initially known for its sports merchandise but which has expanded its footprint in sports.
Fanatics is reportedly in talks to acquire German sports betting company Tipico.