OpenSea, the largest NFT marketplace, announced on Friday that it was parting ways with half of its workforce. CEO Devin Finzer shared a detailed nine-part Twitter thread outlining their plans to revamp the OpenSea product line and corporate culture.

This decision is a crucial part of OpenSea’s strategy to streamline operations and foster innovation, a plan that Finzer had recently discussed on social media. The goal is to create a closer, more direct connection with the user community.

In a candid statement, Finzer acknowledged the difficulty of this decision but emphasized its importance in reshaping the marketplace’s functionality.

He expressed gratitude to those affected by these changes, assuring that their departure doesn’t reflect negatively on them.

These workforce reductions align with OpenSea’s upcoming launch of OpenSea 2.0, a reimagined marketplace, coinciding with a period of NFT price fluctuations.

OpenSea facilitates the trading and acquisition of various NFT collections, including popular ones like Bored Apes and Pudgy Penguins.

Finzer explained that their approach is shifting towards a more streamlined team structure that fosters a direct and intimate relationship with their user base.

He said, “So today, we’re saying goodbye to a number of OpenSea teammates. This is the most difficult part of this change. These folks played a key role in getting us to this point, and I’m incredibly thankful for their contributions.”

OpenSea has taken steps to support the employees affected by these layoffs. The company plans to adopt a flatter organizational structure moving forward.

Those impacted will receive an accelerated equity vesting schedule, six months of health and mental health services, and four months of severance pay.

OpenSea, once a dominant force with over 70% market share in October of the previous year, saw its market share decline to approximately 18% by November 2023.

In the face of these challenges, OpenSea is renewing its commitment to innovation and leadership in the NFT space, along with a comprehensive corporate restructuring.

The NFT market is evolving, and OpenSea faces increased competition from emerging platforms that tout reduced fees and cost-free minting.

Finzer’s announcement comes at a time of market turbulence, highlighting the current challenges in the NFT space.