OpenSea cuts 20% of staff

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2022-07-18 13:01:40

The world’s leading NFT marketplace OpenSea has just made new moves due to the impact of the market downturn, shrinking the scale in preparation for the crypto winter.

NFT Marketplace OpenSea cuts 20% of staff

Yesterday (July 14), Devin Finzer – CEO of OpenSea – announced that his company has laid off about 20% staff. This action is explained that is intended to prepare for a crypto winter that is likely to “last” up to 5 years.

Despite having faced a bear market, CEO Finzer implied caution should be exercised as the market currently faces an “unprecedented combination of crypto winter and macroeconomic uncertainty.”

It is known that employees in this reduction will receive severance pay, job placement assistance and health care insurance from 2023. This information has been communicated directly to all employees.

Finzer described his decision as “sad and difficult”, but he did not blame the company’s circumstances or vision.

The CEO shared:

“We built this company with crypto cyclicality in mind. We’ve also built a very strong balance sheet through the money we’ve raised and the product-market fit we’ve demonstrated.”

Finzer asserts that an “innovation boom” is coming for the NFT market and predicts the NFT will become “the largest market on the planet.”

Previously, many other crypto companies have announced staff reductions of a similar magnitude to OpenSea in response to the market situation. Bitcoin miners Compass Mining and Coinbase, respectively, laid off 15% and 18% of their employees, and admitted to hiring overstaff as the market boomed in 2021.

In June, 20% of BlockFi employees were laid off, as the lending platform also secured a $250 million line of credit from FTX to consolidate operations.

OpenSea has faced a series of troubles in recent weeks, impacting both its balance sheet and reputation. A former employee of the company was charged with insider trading in early June. Along with the OpeaSea report that leaked user information just a month later.

Earlier this July, the OpenSea board of directors also announced that Alex Atallah – one of the co-founders of OpenSea – would step down in August to focus on innovation in other areas.

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