OpenSea Completes Significant Restructuring and Fires Half of Its Staff
The company made this change to improve its capabilities and revamp its marketplace offerings.
OpenSea has announced that it has started a major reorganization process. The biggest and most popular NFT marketplace startup said it is a laying off about half of its staffs. Details of the staffs impacted by the decision was not disclosed by the company.
An official from the company highlighted in a statement that the goal of the reorganization. The aim is to create an enhanced and more flexible version of OpenSea. OpenSea's co-founder and CEO, Devin Finzer, provided more clarification on the decision. Via Twitter, he stated that the company wants to lead the NFT market again.
Leading marketplaces like OpenSea have seen a gradual decline in the NFT market, which has affected their positions. OpenSea faced criticism for how it handled creator royalties, despite its heavy funding and its leading role during the NFT boom. This led to a policy change earlier this year.
Recent data indicates that OpenSea's market share is declining in comparison to new competitors. Thus, this underscores the need for the business to adjust to the changing NFT market dynamics.
Changes are to Preserve the Company's Heritage
This latest round of restructuring follows a previous set of layoffs in July 2022. The layoff reflected the challenges faced by the NFT sector amidst the fluctuations in the market.
In January 2022, OpenSea completed a large funding round of $300 million, which valued the company at $13.3 billion. But the company has had to make strategic changes to preserve its competitive advantage due to the declining trend in the NFT market. OpenSea has shifted its focus to a flatter organizational approach. To speed the development of a new marketplace.
OpenSea has however promised to provide affected employees with some benefits. This include an accelerated timetable for equity vesting, four months of severance pay, and six months of health services. These measures are intended to lessen the impact of the restructuring. It will also help support affected employees during the transition period.