OpenSea, the largest nft marketplace, announced on Friday that it would end the employment contracts of half of its workforce. CEO Devin Finzer revealed that they are starting over with a new line of OpenSea products and culture in a nine-part Twitter thread.
OpenSea restructurings
OpenSea is moving forward with a more streamlined workforce in an effort to innovate, as part of a planned strategy Finzer recently announced on social media.
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OpenSea is making some important changes today to focus on the next version of our product.– Devin Finzer (dfinzer.eth) (@dfinzer) November 3, 2023
With this challenging but important step, the organization hopes to build stronger and more direct contact with its user community.
Finzer made a sobering statement, announcing the company’s decision to part ways with certain colleagues, which is a big step forward for the company’s future.
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This is the hardest part of this change. These people played a key role in getting us to this point and I am incredibly grateful for their contributions.Their departure is not a reflection of the people we part with today. Others would be lucky to hire them.
– Devin Finzer (dfinzer.eth) (@dfinzer) November 3, 2023
Finzer explained that although the layoffs were painful, they were necessary to alter the way the market works. He expressed his gratitude to the people affected by the decision and stated that his departure did not speak ill of them.
A company representative said the layoffs affected about 50% of the staff.
btc market cap currently at $679.871 billion. Chart: TradingView.com
OpenSea 2.0 launches amid falling nft prices
The workforce reduction coincides with the company’s upcoming introduction of a reinvented marketplace known as OpenSea 2.0, amid a period of declining non-fungible token prices. The site facilitates the trading and acquisition of nft collections, such as Bored Apes and Pudgy Penguins.
According to Finzer, there will be a shift in their operational approach, where they will transition to a more streamlined team structure that fosters a direct and intimate relationship with their user base.
“So today we say goodbye to several OpenSea teammates. This is the hardest part of this change. “These people played a key role in getting us to this point and I am incredibly grateful for their contributions.”
OpenSea offers support to affected workers
An OpenSea representative said the company will adopt a flatter organizational structure in the future. Workers affected by the layoffs will get an accelerated capital acquisition schedule, six months of health and mental health services and four months of severance pay.
Importantly, OpenSea wants to regain leadership in the nft market, where it previously dominated with a share of over 70% in October last year, but as of November 2023, it only had around 18%. These challenges require a new commitment to innovation and leadership in the nft space, as well as extensive corporate restructuring.
Amid a changing landscape in the nft market, OpenSea faces intensified rivalry from emerging platforms promoting reduced fees and free minting. Finzer’s disclosure aligns with a period of struggle in the market, indicating the challenges currently facing the nft space.
The nft craze saw a surge in 2021, attracting celebrities and artists, but the 2022 slowdown and subsequent prolonged market crash significantly impacted the trajectory of the nft industry.
Featured image from Shutterstock
