NFT Marketplace OpenSea Cuts Staff By 20% Amid Market Downturn

The bear market has negatively affected the staffing levels at several major crypto firms, and the latest to suffer under the carnage of the price drops is the world’s leading non-fungible token (NFT) marketplace OpenSea. The platform announced massive layoffs on July 14, citing “an unprecedented combination of crypto winter and broad macroeconomic instability.”

OpenSea co-founder and CEO Devin Finzer shared a message conveyed to employees on Twitter disclosing that the company was laying off 20 percent of its staff.

“We need to prepare the company for the possibility of a prolonged downturn,” Finzer said. Adding,

The changes we’re making today put us in a position to maintain multiple years of runway under various crypto winter scenarios (5 years at the current volume), and give us high confidence that we will only have to go through this process once.

The letter continues to say that staff being laid off will be provided with a generous severance package, health coverage until 2023, and “accelerated equity vesting for those who haven’t hit their cliff.” The company will also assist staff with job placement and support. OpenSea joins a slew of companies that have had to cut staff amid the crypto winter and a decline in popularity of NFTs that peaked in January 2022.

Finzer said on Twitter,

Each of the people leaving has played a critical role in OpenSea’s journey. They have supported our users, championed our mission, and worked intensely to build the foundations of the NFT space…For those leaving us, we’ll be providing generous severance and healthcare coverage into 2023, and equity vesting for those who haven’t hit their cliff. We’ll also be helping with job placements, and opening our personal networks to support them however we can.

Rival Marketplaces Ready To Pounce

While the embattled OpenSea shares its difficult news, rival marketplaces such as LooksRare and Binance NFT have been quick to take to Twitter to comment on Finzer’s decision to cut staff. LooksRare shared the news that they are currently in the process of hiring more people to expand their team. Binance NFT on the other hand shared a rather harsher reply, saying: 

“Tough times don’t last. Tough teams do.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.