OpenSea Lays Off 20% of its Employees as Crypto Winter Hits Hard

American non-fungible token (NFT) marketplace, OpenSea has announced it is cutting back on the number of employees in the firm. The CEO and Co-founder of OpenSea, Devin Finzer took to Twitter to make the announcement. Although, he previously informed all the company’s employees through a note.

According to Finzer, only about 20% of its current workforce was affected. The exact number of affected persons was not revealed but the firm confirmed that mentioned that about 230 employees will remain. In his note to the employees, Finzer regarded the decision as a sad and difficult one that had to be made.

For easy transition, OpenSea promised to create an incentive package for the affected workers. The NFT marketplace guaranteed accelerated equity vesting for those who had not hit their cliff and healthcare coverage until 2023. Interested laid-off staff will be helped with job opportunities.

Finzer blames the layoff on an unprecedented combination of ‘crypto winter and broad macroeconomic instability’. He acknowledged that OpenSea is fully aware of the cyclical nature of the crypto market. Nevertheless, the company has to be prepared for the possibility of a prolonged downturn.

With the current 20% layoff decision, OpenSea is securing its future up to five years down the line with its current volume. The company is taking a position that would help it weather multiple years of runway under prolonged crypto winters. There is great confidence that this might be the only time OpenSea gets to lay off some of its staff.

Crypto Exchanges Defies Crypto Winter

The crypto winter has given birth to several unpleasant situations in the ecosystem. The value of the crypto market has dwindled by more than half of its peak last year. Many firms are affected and are coming up with strategies to outlive the prevalent extreme market conditions.

Meanwhile, some others have taken this time to onboard more hands. The world’s largest cryptocurrency exchange Binance decided to expand its workforce a few weeks ago. The exchange published 2000 new job openings worldwide.  

It was also rumored that KuCoin was going to join in a massive sack in the cryptosphere. Johnny Lyu, KuCoin CEO, however, debunked the rumor saying that instead, the exchange was hiring more workers up to 300.