PIP Labs, the development company behind the Story Protocol layer-1 network for intellectual property (IP), has laid off approximately 10% of its workforce as it shifts strategic focus towards artificial intelligence infrastructure. The company confirmed the elimination of five full-time employees and three contractors, a move described as a "small workforce adjustment" to sharpen its focus.
The restructuring comes as the firm's native IP token has plummeted 86% from its all-time high of $14.78 in September 2025 to about $0.80, despite PIP Labs securing an $80 million Series B funding round in 2024 that valued the company at $2 billion. That funding round was led by venture capital giant Andreessen Horowitz, with participation from Walt Disney Imagineering executive Scott Trowbridge and pseudonymous NFT collector Cozomo de' Medici.
Story Protocol Chief Protocol Officer Andrea Muttoni stated the company is "leaning into IP infrastructure for AI," with a specific focus on AI training data and the emergence of AI agents. "PIP Labs is sharpening focus [through] a small workforce adjustment," Muttoni told Decrypt, noting that recent traction from Poseidon—a company incubated by Story that raised $15 million in seed funding—is shaping where Story will "double down."
Poseidon, which allows AI developers to access legally cleared training data, recently introduced a dataset containing 33,000 hours of audio across 17 languages. Poseidon Chief Scientist Sandeep Chinchali noted on X that audio represents a limiting factor for AI as it becomes a primary interface between humans and AI.
The layoffs follow broader challenges in the IP tokenization sector and mirror workforce reductions across the crypto industry. Earlier in the week, the team behind Ethereum layer-2 network Optimism laid off 20 employees, and last month, Jack Dorsey's Block Inc. cut 4,000 employees (roughly 40% of its workforce), attributing the move to a pivot towards AI alongside PIP Labs.
Story Protocol, which debuted in February 2025, was positioned as a new way to reduce friction for creatives by allowing them to license and remix IP through programmable licensing designed to automate royalty payments. However, the network faced controversy in September 2025 when a Story-based meme coin modeled on "Baby Shark" creator Pinkfong collapsed after an IP dispute, prompting Story to clarify it wasn't involved in licensing matters between the involved parties.
