By James Davis
The leading marketplace for Solana NFTs, Magic Eden, has revealed that it made a tough decision to let go of its 23 employees on Monday afternoon. The firm said the move was part of its restructuring plans to keep the business afloat during the ongoing crypto winter.
On his Twitter account, Jack Lu, Magic Eden co-founder and CEO wrote that he was grateful to all outgoing employees for contributing immensely to the success of Magic Eden. In addition, Jack Lu disclosed that he spoke to each of those employees before publicizing the news.
The CEO went ahead to explain that Magic Eden had grown, and its challenges had also evolved. Therefore, while establishing its 2023 priorities, the company had to look closely at the required structure and positions necessary to achieve Magic Eden’s strategic goals.
Magic Eden Plans to Support Affected Employees
Further, Jack Lu reported that the marketplace would help the dismissed employees transition. According to the CEO, MagiC Eden will let the employees retain their laptops and receive salaries for the next two months. In addition, the affected employees will be provided with healthcare for six months.
Magic Eden began its operations in 2021. Today, it is one of the most preferred Solana-based NFT marketplaces. Last September, the firm expanded into the largest blockchain for NFTs, Ethereum, launching support for Otherside, Pudgy penguins, and Bored Ape Yacht Club.
Other Crypto Firms That Cut Off Employees
Magic Eden joins the growing list of crypto firms that have resorted to laying off some of their employees since the start of the year. One of them is Huobi. The crypto exchange announced laying off 20% last month due to the firm’s financial issues at that time.
Coinbase, another crypto exchange, also announced on January 10 that it was cutting off over 900 employees, citing harsh market conditions. The exchange spent nearly $160 million in severance packages. Other crypto exchanges that have made a similar move this year include Crypto.com and Blockchain.com.
Meanwhile, Jack Lu is optimistic about Magic Eden’s future despite the layoffs. He says that soon after helping the affected workers transition this week, his team will strategize on how to achieve the firm’s goals for this year. He adds that people should watch out for new products in the coming weeks.