As the market prices continue to wreak havoc on crypto firms, Opensea has joined the growing list of firms laying off employees.
In an announcement shared on Twitter by CEO Devin Finzer, the popular Non-fungible Token (NFTs) marketplace reduced its headcount by 20%. This represents one in five workers.
According to Devin, the decision was necessary due to an unprecedented combination of crypto winter and broad macroeconomic instability. The difficult decision was necessary to prepare for a prolonged downturn.
Drawing positives from the layoffs, Devin said it helps Opensea maintain a five-year runaway without having to reduce headcount again.
Interestingly, Devin feels the winter avails the space of an opportunity for the explosion in innovation and utility across NFTs. And with the difficult but important changes it has made, Opensea will continue to lead the space. “Winter is our time to build”, Devin added.
Also contained in the announcement are several relief packages for affected employees. The generous package includes severance pay, healthcare insurance into 2023, and accelerated equity vesting.
He also plans to help departing staff with their job search through personal networks where possible.
OpenSea with a valuation of $13 billion earlier in the year, generates revenue from a 2.5% fee charged on all trades on the platform.
The firm realized $695 million in June, a sharp contrast to its monthly average of $2.5 billion since August 2021. This slump in sum may have necessitated the need to downscale as demand decreases.
Crypto firms downsizing as crypto winter continues
With the continued sharp decline in market prices affecting digital assets, mass layoffs have become a recurring decimal in the space.
Several industry players including Coinbase, BlockFi, Crypto.com, and Bitpanda have announced layoffs in the first half of the year.
Coinbase recently retrenched about 18% of its personnel as it prepares for the prolonged crypto winter. Bitpanda, an Australian-based crypto trading firm also reduced its staff strength from 1000 to 730.
The reduction of headcount by these heavyweight industry players suggests the crypto winter isn’t ending anytime soon.