NEAR Foundation, the organization behind the NEAR Protocol, has recently made the decision to reduce its team by approximately 40%, resulting in the layoff of 35 employees. This move is part of the foundation’s realignment initiative, aimed at increasing efficiency and focusing on activities with a higher impact. The decision to downsize was made after a review revealed that the foundation was moving too slowly at times and trying to do too many things simultaneously.
As part of the restructuring process, NEAR Foundation will primarily be reducing the size of its community, business development, and marketing teams. Notably, the engineering team will not be affected by the layoffs. By streamlining these areas, the foundation aims to concentrate its efforts and resources on key activities that will drive the advancement of chain abstraction, mainstream Open Web adoption, and user-owned AI.
Although the layoffs will undoubtedly have an impact on the affected employees, NEAR Foundation has committed to supporting them in finding new opportunities within the Web3 industry, NEAR ecosystem, and other related fields. This demonstrates the foundation’s commitment to the well-being and professional growth of its team members, even in times of reorganization. While the decision to downsize may be difficult, it is essential for the foundation to adapt to changes in the ecosystem and ensure its long-term success.
NEAR Foundation wanted to reassure stakeholders that despite the layoffs, its treasury remains secure and strong. The foundation currently holds a substantial amount of funds, including $285 million in fiat, 305 million NEAR tokens worth over $1 billion, and $70 million in loans and investments. This financial stability provides a solid foundation for NEAR Foundation to continue its mission and drive innovation within the Web3 space.
While NEAR Foundation’s layoffs may seem significant, they are not isolated occurrences within the crypto industry. Other firms within the sector, such as Blackrock, have also announced plans to downsize their teams. In Blackrock’s case, the decision is expected to impact approximately 3% of its workforce, amounting to around 600 employees. These layoffs are not driven by capital issues but rather reflect the performance of the staff. Similar to NEAR Foundation, these moves are part of routine restructuring efforts to optimize operations and enhance overall efficiency.
The cryptocurrency industry as a whole has experienced a wave of layoffs in recent years. In 2023 alone, over 13,400 employees across 108 companies were affected by job cuts. OpenSea, a prominent NFT marketplace, reduced its staff size by 50% in November 2023 to focus on a major update known as OpenSea 2.0. Similarly, Ava Labs, the development team behind the Avalanche blockchain, downsized its workforce by 12% during the same month to reallocate resources and prioritize growth. Polkadot Technologies, a leading blockchain platform, also underwent a reduction in workforce, laying off 100 employees from its business development and marketing departments, amounting to a 30% reduction. Major crypto exchanges like Coinbase and Binance were not immune to this trend either, as they also announced workforce downsizing initiatives throughout the year.
The decision by NEAR Foundation to downsize its team is a strategic move aimed at increasing efficiency and focus within the organization. By streamlining its operations, the foundation can prioritize key activities that will drive innovation and adoption within the Web3 ecosystem. While the layoffs may be challenging for the affected employees, NEAR Foundation has committed to assisting them in finding new opportunities within the industry. Additionally, the foundation’s strong and secure treasury provides a stable financial base for future growth and development. As the crypto industry continues to evolve, restructuring efforts like these are becoming increasingly common, reflecting the need for organizations to adapt and optimize their operations in a rapidly changing landscape.