The bleak market outlook continues to affect the cryptocurrency ecosystem as prominent companies face the difficult reality of reducing their workforce to ensure their long-term viability.
The Non-Fungible Token Market (NFT) OpenSea has established itself as a leader in its class. However, its success was not enough to overcome the possible length of the so-called crypto winter.
The company announced that it will cut its staff by 20% in July to ensure long-term business continuity. OpenSea co-founder Devin Finzer shared a Slack message sent to the company outlining the reasons for the reduction move on Twitter on July 14:
Finzer has promised to give outgoing employees a “generous” compensation package and health care coverage through 2023, as well as speed up equity vesting periods for eligible employees.
The co-founder noted that despite building a strong balance sheet through fundraising and “product-to-market fit,” OpenSea had to reduce its workforce to ensure a financial runway for a five-year crypto winter scenario.
Related: Crypto Exchange Coinbase Cuts Staff by 18% Amid Bear Market
A few OpenSea employees have taken to social media platforms with posts indicating their dismissal from the company. One employee was “shocked and still processing” the news while taking a positive stance:
Christiana Kern, a recruiter working for OpenSea, confirmed her departure from the company in a LinkedIn post also shared on Twitter:
“In my short time there, I’ve hired 10 people with 100% offer acceptance, helped build recruitment processes and really delved into Web3. I’ve worked with incredible people and am so grateful for my time there, but I’m ready for my next adventures.”
Cointelegraph spoke to another former OpenSea employee who admitted he was surprised by the announcement. The individual, who spoke on condition of anonymity, had been employed in the cryptocurrency industry for about a year and wanted to continue working in the Web3 space.
These posts got a lot of attention, as colleagues and acquaintances offered help to help recruit outgoing OpenSea employees. Projects such as the DAO payroll and funding platform Utopia Labs have invited engineers to explore new business opportunities at the company:
OpenSea has become the largest company focused on NFT to be forced to lay off employees along with important companies in other corners of the blockchain and cryptocurrency ecosystem. June 2022 saw the announcement of spending cutbacks at the likes of major exchanges Gemini, Coinbase, and Crypto.com.
The Crypto Jobs List estimates for Cryptocurrency, Blockchain and Web3 that 3,500 jobs have been lost across the three major exchanges. At the same time, the service noted a 20% decrease in the total volume of businesses and jobs being advertised since May.
While other companies are streamlining their teams, the likes of Binance, Kraken, and OKEx are employing more than 2,000 jobs collectively. The Crypto job listing also estimates that another 1,000 jobs are set to be created by a large number of startups in the cryptocurrency and non-changeable token (NFT) space.
Cryptocurrency Jobs, another job portal platform, has also noticed an increase in the number of companies requesting HR assistance. Daniel Adler, founder of Cryptocurrency Jobs, told Cointelegraph that he has worked with 40 different companies across the cryptocurrency ecosystem since the markets worsened in 2022:
Some teams have implemented hiring freezes, others are restructuring and looking at their staffing needs for the year, and for some, it’s business as usual. For many teams, a bear market is a great time to make meaningful and strategic positions.”
Cointelegraph has reached out to a number of individuals affected by the staff cuts in the cryptocurrency industry. If you recently lost your job or been affected by the prevailing market conditions and would like to share your experience/views – send an email to email@example.com.