Leading non-fungible token (NFT) marketplace OpenSea has revealed its plans to streamline its operations by laying off half of its workforce in a major restructuring effort. CEO Devin Finzer took to Twitter to announce that the company is making significant changes to shift its focus towards the development of OpenSea 2.0.
Finzer stated, “We are shifting to a smaller team as we build a new foundation. So today, we’re saying goodbye to a number of OpenSea teammates.” He expressed gratitude to the affected employees and acknowledged that such changes are never easy. Furthermore, he emphasized that these changes are being made with the community in mind.
Community-driven Restructuring
According to Finzer, OpenSea’s decision to redirect its efforts stems from valuable feedback received from its users. He admitted that the company has felt like a follower rather than a leader in the NFT market and is determined to change that.
Employee Benefits
The reorientation of OpenSea’s team comes with a range of benefits for the affected employees. These include an accelerated timetable for equity vesting, four months of severance pay, and six months of health services. OpenSea, which raised $300 million in January 2022 and was valued at $13.3 billion at the time, has experienced a decline in the market and faced criticism for its handling of creator royalties. The company implemented a policy change this year in response to the feedback.
This round of restructuring follows a previous set of layoffs in July 2022. OpenSea is committed to aligning its team with the upcoming product upgrade to OpenSea 2.0.
NFT Market Challenges
As the NFT market faces challenges, a report published in September by crypto gambling platform DappGambl reveals that the majority of NFTs are currently considered “worthless.” The report highlights the high-risk nature of NFTs and emphasizes the need for thorough due diligence.
“Of the collections we identified, only 21% were fully spoken-for, in terms of having 100%+ ownership,” stated the report. “This means that 79% of all NFT collections – otherwise known as almost 4 out of every 5 – have remained unsold.”
