eBay has cut more than 30% of its Web3 division staff and halted all plans for NFTs and digital collectibles on its platform, roughly 18 months after acquiring Manchester-based NFT marketplace KnownOrigin.
eBay has cut more than 30% of its Web3 division staff and halted all plans for NFTs and digital collectibles on its platform, roughly 18 months after acquiring Manchester-based NFT marketplace KnownOrigin.
The layoffs claimed several key figures in the division. Stef Jay, who served as business and strategy officer for eBay's Web3 operations, has resigned. David Moore, one of KnownOrigin's founders, has been made redundant. Sources within the company described a falling out between eBay's leadership and the KnownOrigin team that preceded the cuts.
"Many within the company are unhappy, blaming the lack of leadership and strategy for the layoffs," one source told NFTgators. "There are internal criticisms, even at senior levels, questioning the qualifications of the current head of Web3 as well as eBay's strategy team."
eBay acquired KnownOrigin in June 2022, when the broader NFT market was still riding the tail end of its 2021 boom. The deal was part of a wider push into digital collectibles that also included a partnership with music NFT platform OneOf and the $295 million acquisition of TCGplayer.
The company pushed back on the characterisation of a full retreat. "Embracing innovation is a cornerstone at eBay, including continued investment in Web3," a spokesperson said, adding that the company remained committed to its Web3 strategy and would continue operating the KnownOrigin platform.
The cuts follow a separate round of company-wide layoffs announced in January, when eBay said it would eliminate roughly 1,000 positions, or about 9% of its full-time workforce. The Web3 reductions appear to be part of that broader restructuring rather than a standalone decision.
KnownOrigin had built a reputation as one of the more artist-friendly NFT platforms before eBay's acquisition. Whether the marketplace survives in its current form under reduced staffing remains an open question.
