NFT Marketplace OpenSea to Reduce Workforce as it is Planning “Big Changes”

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Leading non-fungible token (NFT) marketplace OpenSea, unveiled plans to lay off half its workforce, amid the company’s major restructuring plans.

The platform’s CEO Devin Finzer wrote on X (Twitter) that the firm is making “big changes” to focus on a new version – OpenSea 2.0.

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OpenSea is making some big changes today to focus on the next version of our product.

— Devin Finzer (dfinzer.eth) (@dfinzer) November 3, 2023

He said that the company is “shifting to a smaller team”, as it is building a new foundation. “So today, we’re saying goodbye to a number of OpenSea teammates.”

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We’re building a new foundation so we can innovate faster and we’ll have some experiences to share with you soon. We will change how we operate – shifting to a smaller team with a direct connection to users.

So today, we’re saying goodbye to a number of OpenSea teammates.

— Devin Finzer (dfinzer.eth) (@dfinzer) November 3, 2023

Finzer thanked affected OpenSea employees adding that such changes are “never easy.” He added that the company is making these changes with the community in mind.

“We’re incredibly thankful to those teammates that are departing today and grateful for the OpenSea community for their continued support.”

Finzer said that the company redirection comes following feedback from users. The company feels “like a follower, not a leader,” he added.

“And that’s not who we want to be. We want to move with speed, quality, and conviction to make more meaningful bets.”

As a result, OpenSea re-oriented the team to align with the next big product upgrade to OpenSea 2.0.

A company spokesperson noted that affected employees would receive benefits. These include accelerated timetable for equity vesting, four months of severance pay, and six months of health services.

OpenSea was the largest marketplace during the NFT market boom and raised $300 million in January 2022. The company was valued at $13.3 billion at the time, however, gradual decline in the market has affected its position.

The platform faced criticisms for taking-off creator royalties, despite its heavy funding, which led to a policy change this year. The latest round of company restructuring follows a previous set of layoffs in July 2022.

NFT’s Downward Trend

According to data from a go-to crypto gambling platform DappGambl, a vast majority of NFTs are now “worthless.”

“Of the “73,257 NFT collections we identified, an eye-watering 69,795 of them have a market cap of 0 Ether (ETH).”

The report, published in September, noted that 95% of NFT holders are currently holding onto worthless investments. This highlights NFT’s high-risk nature and demands the need for careful due diligence.

Further, there isn’t enough demand to keep up the supply of NFT’s.

“Of the collections we identified, only 21% were fully spoken-for, in terms of having 100%+ ownership,” the report said. “This means that 79% of all NFT collections – otherwise known as almost 4 out of every 5 – have remained unsold.”