Yuga Labs' CEO, Greg Solano, encountered a challenging day highlighted by a message to staffers dispersed to the public. This came in the aftermath of a company-wide meeting unveiling imminent layoffs, leading some team members to grapple with tougher times within the organization. Solano attributed Yuga's struggles to a deviation from its original vision.

Discussing his two-month stint as CEO in internal communications, Solano bemoaned the dilution of the firm's creative principles. He expressed his concerns, saying, "The initial spark that fueled this company's growth has been dimmed by labyrinthine corporate procedures. Despite our dedication and hard work, we often find ourselves entangled in groups and committees. We tend to plan excessively without much to show in terms of execution." Solano regretted the decline in creator royalties, which had once energized the entire company ecosystem. In the current scenario, he admitted facing significant challenges but remained optimistic about the future.

Solano outlined the preliminary actions taken during the restructuring phase, including the separation of HV-MTL and Legends of the Mara on April 17. Yuga's gaming assets were acquired by the game developer Faraway, with Yuga's chief gaming officer, Spencer Tucker, transitioning to their team. Prior to Solano's announcement, Won Kim was designated as Yuga's head of brand partnerships. An NFT fund and consulting agency co-founder, Kim, left his former role to embark on this new journey with Yuga.

Post-Solano's declaration, the X crypto community exhibited mixed reactions to the layoffs, although the CEO's statement was met with overwhelming support. Amid the supportive responses, there were dissenting opinions. One individual, Ricefarmer, claimed to have been a part of the recent layoffs at Yuga Labs and underscored their prior engagement as a Discord moderator. Renowned for its pioneering work in NFT collectibles, Yuga Labs has faced obstacles in tandem with market developments. Last October, the company underwent a significant restructuring phase entailing a round of job cuts.