Magic Eden, the top marketplace for Solana NFTs, announced the layoff of 22 employees late Monday, citing company-wide restructuring as the wider crypto economy continues to grapple with a harsh winter.
Since the beginning of 2023, several prominent crypto companies, including Huobi, Coinbase, Blockchain.com, Crypto.com, and Luno, have also announced layoffs.
Launched in September 2021, Magic Eden quickly rose to become one of the Solana blockchain’s most popular marketplaces for NFTs, according to DappRadar. In September 2022, Magic Eden expanded into the Ethereum ecosystem, rolling out support for Bored Ape Yacht Club, Pudgy Penguins, and Otherside.
“We are deeply grateful to these folks—each of them has contributed immensely to Magic Eden over the last year,” tweeted Magic Eden co-founder and CEO Jack Lu. “We will be honoring them and their contributions with the utmost care and respect. We were able to speak with each person 1:1 before sharing this news publicly.”
In a letter shared in the thread, Lu said that as Magic Eden grew, the nature of its challenges evolved, adding that as the company established its priorities for 2023, Magic Eden had to take a hard look at what structure and roles were needed.
“To be clear-eyed, addressing our strategic goals requires making changes to our team,” the letter said.
The letter says that to help those affected by the layoffs, Magic Eden will offer two months’ severance, remove the 1-year vesting requirement for stock options, let them keep their laptops, and provide healthcare for another six months.
"We can confirm that Magic Eden has made the decision to part ways with 22 teammates as part of a company-wide restructuring effort," a Magic Eden representative told Decrypt on Telegram. "We do not take this situation lightly and will provide those affected with care and respect."
While he said the layoffs are a shock, Lu says he continues to look to the future.
“This week, we will focus our energy on helping the people who are transitioning from Magic Eden,” Lu said. “Next week, we will regroup, refocus, and move forward.”
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