Magic Eden, a non-fungible token (NFT) marketplace, announced on Monday that it would be “parting ways” with 22 employees as part of a “company-wide restructuring,” according to a message posted by Jack Lu, the platform’s CEO, and co-founder.
🧵 Today is a sad day at Magic Eden.
As part of a company-wide restructuring, we have made the difficult decision to part ways with 22 teammates. Nothing about this decision takes away from the talent, hardwork and dedication of this incredible group of people. pic.twitter.com/2LAGfK9dMV
— Jack Lu (@0xLeoInRio) February 14, 2023
That equals about 15% of the company’s workforce, based on the 141 employees listed on LinkedIn. Lu explained on Twitter that adjustments needed to be made to the team for the organization to meet the new objectives for 2023.
“As we established our priorities for 2023, we took an in-depth look at what structures and roles are needed internally, and had to make hard decisions to find the right mix of roles for us to pursue the next stage of scaling across chains,” Jack Lu stressed.
Magic Eden Needs New Skills to Thrive
Magic Eden stated that their team needed to incorporate specific types of new skills and expertise without losing momentum to accomplish their goals.
Moreover, the CEO promised to support impacted employees during their transition and noted that many of the platform’s products are “entering new stages of growth.”
Magic Eden will provide affected employees with a two-month layoff, waive the one-year stock options vesting requirement, allow them to keep their laptops, and provide them with additional benefits for the following six months.
The non-fungible token marketplace claimed to have notified its larger team that even in the current bear market, the company is still very well capitalized, has a very long runway, and they are still optimistic about its future trajectory through 2023 and beyond.
The leading Solana-based NFT marketplace has suffered as the price of Solana coin (SOL) has dropped dramatically over the last year. In response, it has decided to expand support for Ethereum and Polygon-based NFTs to assist it in remaining competitive against marketplaces like OpenSea.
Magic Eden is the most recent cryptocurrency business to reduce its workforce. Last month, Digital Currency Group’s Luno reduced staff by 35%, Coinbase by 20%, and Genesis by 30%.