The OpenSea nonfungible token (NFT) marketplace made an announcement on November 3rd, revealing its decision to reduce its workforce. CEO Devin Finzer, who is also a co-founder, disclosed this news on X (formerly Twitter), emphasizing the launch of OpenSea 2.0 with a smaller team.
OpenSea, established in 2017 during the early days of NFTs, operates similarly to platforms like eBay and Etsy, accepting Ether (ETHUSD) as a form of payment. In July 2022, the company downsized its workforce by 20%, citing the crypto industry’s challenges during that period. This reduced the staff count to 230, as reported in the media.
“Today, we are implementing significant organizational and operational changes to focus on creating a more agile and ultimately improved version of OpenSea. We deeply appreciate the contributions of those departing from OpenSea and are providing comprehensive support, encompassing both financial and non-financial assistance.“
The spokesperson also mentioned that approximately 50% of employees across all departments would be affected, particularly highlighting a reduction in middle management positions. The departing employees would receive severance packages lasting four months, accelerated equity vesting, and six months of continued healthcare and mental health support.
The market for collectible NFTs reached its peak in 2021, but since then, use cases like tokenizing assets, identity verification, and legal documents have gained popularity, while the value of many collectibles has decreased.
OpenSea faced substantial criticism from the community in August when it announced the retirement of its operator filter, a feature that allowed creators to blacklist marketplaces not enforcing royalties. In response, Yuga Labs, the creator of popular NFT series like Bored Ape Yacht Club and CryptoPunks, reduced its use of OpenSea’s Seaport marketplace smart contract.
“As we rebuild, we will continue to support our existing products and will progressively test OpenSea 2.0 in a public setting,” mentioned Finzer in his X post. The company currently has 12 open positions listed on LinkedIn, offering starting salaries ranging from $90,000 to $270,000.