OpenSea announced mass layoffs amid a crypto crash and the lowest trading volume of nFTs since July of last year.
Devin Finzer wrote a Slack message to Twitter, stating that “Mass layoffs total about 20 percent of OpenSeas’ total staff.” According to the company’s LinkedIn profile (via Engadget), approximately 150 people gathered from an ex-team of 769 people. Finzer wrote that laid off workers receive “generous severance”, education and savings until 2023 and accelerated capital investment. OpenSea will help with work placement, where possible through personal networks.
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The leaveoff was necessary as OpenSea faces an influx of cryptomitors, a slow down in the sale and a huge fall in sales volume.
“We’ve been through winter before, and we built that company in mind cyclicality of crypto,” wrote Finzer in his Slack message. “To the contrary, we enter a complex combination of crypto winter and macroeconomic instability, which is rare, and we must prepare the company for a long downturn. The changes we made today let us maintain the multiple years of runway under different crypto winter scenarios (five years at current volume), and it gives us some confidence that we’ll only have to endure this process once.”
After the current crypto slump, Finzer said that he expects a “biggest innovation and utility expansion” across NFTs. OpenSea faces more challenges than just falling crypto prices.
The theft financed $1 million worth of nitres stolen from OpenSea earlier this year. The company never said how the thieves manage to profit from so many NFTs, but OpenSea users accused the platform of using security vulnerabilities, making it liable to be hacked. A class action lawsuit seeks to prove those accusations in court. OpenSea recently suffered from a data breach that allowed an unspecified third party to share the data. It’s unlikely that this will help OpenSea users already jittery from crashing prices and alleged security vulnerabilities.
