OpenSea Lays Off Up to 50% of its Staff as the NFT Market Remains Stagnant

OpenSea, a non-fungible token (NFT) platform, has reportedly decided laid off 50% of its operating staff as digital art collectibles remain stagnant and NFT prices continue to fall.

CEO Devin Finzer has stated that the restructuring is a are part of a shift to a smaller team with a direct connection to users as OpenSea prepares to launch a revamped marketplace dubbed OpenSea 2.0.

OpenSea, the NFT marketplace, is laying off half its employees as it plans to restructure and make a major shift towards a new strategy called “OpenSea 2.0”. Devin Finzer said that the new direction will focus on product advancements in technology, reliability, speed, quality, and experience, with a direct connection to users.

Reasons Behind Layoffs!

According to company’s CEO Devin Finzer’s post on X (formerly Twitter), the firm is building a new foundation to innovate faster and will shift to a smaller team with a direct connection to users. OpenSea is preparing to establish a rebuilt marketplace, OpenSea 2.0, at a time when NFT prices continue to fall. OpenSea previously laid off approximately 20% of its staff in July 2022, leaving it with a workforce of 230 employees. The latest round of layoffs is believed to have impacted up to 50% of its staff, as reported by Decrypt earlier on Friday.

As we have observed the NFT market has been struggling in recent months, with Nansen also reporting that the floor prices of well-known or “blue-chip” collections declined by more than 25% in August. During the year-to-date, the Nansen NFT-500 index fell 55%, partly reflecting weak demand. It remains to be seen how OpenSea 2.0 will differ from its predecessor, and Finzer has not provided any details on the platform’s planned product offerings or launch schedule.