Non-fungible token (NFT) platform OpenSea has pared back its operating staff as digital art collectibles remain in the doldrums, the company’s CEO Devin Finzer tweeted Friday.
The sweeping layoffs may have affected as much as 50% of OpenSea’s staff, crypto news outlet Decrypt reported earlier Friday.
The job cuts come as the company prepares to launch a revamped marketplace christened OpenSea 2.0, at a time when NFT prices continue to fall. The platform can be used to trade and collect NFT collections including Bored Apes and Pudgy Penguins.
“We’re building a new foundation so we can innovate faster and we’ll have some experiences to share with you soon,” Finzer said in a post on X (formerly Twitter). “We will change how we operate – shifting to a smaller team with a direct connection to users.”
OpenSea previously laid off roughly 20% of its staff in July 2022, leaving it with a workforce of 230 employees, The Information reported.
It is unclear how many people the company employed immediately before this latest round of layoffs.
Nor is it immediately clear how OpenSea 2.0 will differ from its predecessor. Finzer didn’t share details about the platform’s planned product offerings or a timeline for its rollout.
OpenSea didn’t immediately respond to CoinDesk’s request for comment.
According to a Nansen report, prominent NFTs from well known or “blue-chip” collections saw their floor prices drop by more than 25% in August. An NFT’s floor price is the lowest price at which a digital art piece from a particular collection, or drop, can be sold.
Meanwhile, NFT prices have fallen more broadly as well, with the Nansen NFT-500 index dropping 55% during the year-to-date.