eBay Rethinks Web3 Path with 30% NFT Team Reduction

eBay, the e-commerce titan, has significantly reduced its workforce dedicated to Web3, eliminating over 30% of positions within its NFT team, according to a source close to the matter. This decision has ignited discussions about the company’s commitment and future plans for its Web3 and NFT ventures. Despite earlier showing significant interest in digital collectibles, as evidenced by its acquisition of KnownOrigin, a move aimed at incorporating blockchain technology into its offerings, eBay’s latest action casts doubt on its strategy moving forward.

This reduction in staff comes at a time when eBay had been making headlines for its forays into the digital and physical collectible spaces, including a $295 million purchase of TCGplayer, a platform for trading cards. These acquisitions had marked eBay’s ambitious plans to bridge the gap between tangible and digital collectibles, making the recent layoffs particularly perplexing for observers.

The situation is further complicated by the departure of key personnel within eBay’s Web3 division, including Stef Jay, the division’s business and strategy officer, and David Moore, a co-founder of KnownOrigin. Rumors have also emerged about possible tensions between eBay and KnownOrigin, with suggestions that projects related to digital art have been put on hold indefinitely.

Amidst these developments, there’s speculation about internal dissatisfaction with the direction eBay’s leadership is taking, especially concerning its Web3 strategy. This comes against the backdrop of a recovering Web3 market, with many interpreting the layoffs as eBay’s attempt to realign its strategy rather than withdraw from the NFT space entirely.