OpenSea, a prominent non-fungible token (NFT) marketplace, is preparing for a significant reduction in its workforce as reported by Decrypt. CEO Devin Finzer mentioned on X that OpenSea is anticipating another round of layoffs, possibly affecting up to 50% of its staff.
Last year, in July, OpenSea downsized its team by about 20%, decreasing its workforce to 230 employees. With the most recent layoffs, the company may retain as few as 100 staff members.
A representative stated that OpenSea is transitioning toward a “flatter organizational approach.” Employees affected by the layoffs will be provided with six months of healthcare coverage, four months of severance pay, and an expedited schedule for equity vesting.
These layoffs come as OpenSea plans to launch an upgraded marketplace known as OpenSea 2.0, aimed at facilitating the trading and collecting of NFTs such as Bored Apes and Pudgy Penguins. However, specific details about the differences between OpenSea and OpenSea 2.0, including the platform’s launch schedule or product features, have not been disclosed.
OpenSea experienced substantial success as an NFT marketplace during the 2021 boom and the first half of 2022, witnessing billions of dollars in monthly NFT trading volumes. In early 2022, it secured $300 million in funding during its Series C round, co-led by Coatue and Paradigm, at a $13.3 billion valuation.
However, the cryptocurrency market’s downturn in mid-2022 led to a decline in NFT market activity. OpenSea even contemplated the removal of creator royalties, a percentage returned to NFT creators from secondary market sales. In August of the same year, the base prices of well-known NFT collections witnessed over a 25% decrease. This price reduction was observed not only in prominent NFTs but also in lesser-known ones.
