eBay may consider exiting NFT sector, Web3 team reportedly downsized

US-based ecommerce giant eBay is reportedly planning to exit the NFT sector. According to reports, the platform has cut its Web3 team by 30 percent this week. Although not much is known about eBay’s reported decision, it seems some drama has unfolded between eBay and NFT marketplace KnownOrigin, which it acquired in 2022. At the time of the acquisition, eBay was looking to establish itself as a notable player in NFTs. Arena.

In the last few weeks, some senior eBay executives have resigned. Steph Jay, eBay’s business and strategy officer, and David Moore, one of NonOrigin’s founders — both of whom have not been actively engaged with the company for a few weeks, according to a report By Coinagep.

After acquiring KnownOrigin, eBay absorbed the team running the NFT marketplace. The plan was to expand and build on the partnerships that were already in place with KnownOrigin. However, over the past eighteen months since the acquisition, tensions have reportedly increased between the eBay team and the KnownOrigin team. The information was revealed in a report published by NFTgaters, citing an unnamed source familiar with the matter.

“Many within the company are unhappy, and are blaming a lack of leadership and strategy for the layoffs. There are internal criticisms even at the senior level, questioning the competency of the current head of Web3 as well as eBay’s strategy team. report The source has been quoted as saying.

In an internal communication, Moore informed his colleagues that he was impressed by the latest round of proposed redundancies at the company.

“It was brutal to see that level of layoffs within the team,” Moore said in his message — a screenshot of which has been published as part of NFTgators’ report.
So far, eBay has not addressed the situation. It is unclear whether these layoffs are part of an internal restructuring by eBay. After all, sales for the overall NFT market in 2023 hit an all-time low.

NFT sales peaked in September 2021 when sales of these digital collectibles managed to reach approximately $881 million (approximately Rs 7,344 crore). However, as of November 2023, the NFT sale only managed to bring in $10.85 million (roughly Rs. 90 crores).

KnownOrigin team members have also not addressed the situation on any public domain so far. eBay is planning to lay off one thousand more employees. This information was disseminated to the eBay team by CEO Jamie Iannone in January.

“The most significant and difficult of these decisions is to reduce our current workforce by approximately 1,000 roles or an estimated nine percent of full-time employees. Additionally, we plan to reduce the number of contracts in place within our alternative workforce in the coming months.” official note Said at that time.

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