E-commerce giant eBay reportedly plans to lay off 30% of its Web3 and NFT department, with employees criticizing the lack of leadership from management.

According to a report by NFTgators, e-commerce giant eBay, which acquired the NFT marketplace KnownOrigin and the trading card marketplace TCGplayer a few years ago, is rumored to be downsizing its Web3 division, with up to 30% of the affected personnel.

Multiple Executives Depart eBay's Web3 Division

It is reported that eBay acquired the NFT marketplace KnownOrigin in June 2022 and, two months later, made a valuation acquisition of the card trading market TCGplayer for up to $2.95 billion, showcasing the company's interest in Web3 and the digital collectibles space.

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However, reports citing sources revealed that following the aforementioned acquisitions, eBay announced a significant 30% cut in its Web3 division.

He provided internal emails indicating that the division's Business and Strategy Lead, Stef Jay, recently resigned, while KnownOrigin's co-founder, David Moore, also received a layoff notice.

He claimed that the company is shifting its Web3 strategy and even stated:

Relations between eBay and KnownOrigin are deteriorating, with the company ceasing all digital art-related projects and businesses.

He also mentioned that internal staff are discontent with the decision:

Many criticize and accuse the management of lacking leadership and strategy, leading to the layoffs, while also questioning the qualifications of the current Web3 team lead and eBay's strategy team.

NFTgators pointed out that the rapid decline of the NFT market after 2022 may be a contributing factor to eBay's decision.

NFT Market Showing Signs of Recovery

Despite eBay scaling back its expansion into Web3 or the crypto space, the recent NFT market seems to have benefited from the overall crypto market hype sparked by the Bitcoin spot ETF event, with increased trading volumes and market values for various public chain NFTs.

While not as hot as in 2021 and 2022, the market has shown signs of recovery compared to the slump in September last year.

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Frequent Workforce Adjustments Across Companies

Previously reported, companies in both the Web2 and Web3 sectors have been releasing news of layoffs and downsizing since the third quarter of last year. Specific companies include:

• Search engine Google
• Messaging app Discord
• Game engine Unity
• Streaming platform Twitch
• Tech company Microsoft's subsidiaries: Activision Blizzard, Xbox
• Data research team Chainalysis
• NFT marketplace OpenSea
• Various public chains: Polkadot, Ava Labs, Near Foundation, etc.

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