Crypto Bank Anchorage Digital announces layoffs, cuts staff by 20%
- The firm cited regulatory uncertainty in the U.S., broad macroeconomic challenges, and crypto market volatility as reasons for layoffs
- Anchorage described the layoffs as “a strategic realignment to better focus our resources.”
Digital asset firm Anchorage Digital announced that it is laying off 75 employees, ie, approximately 20% of its workforce. The crypto bank justified the layoffs by citing regulatory uncertainty in the U.S., broad macroeconomic challenges, as well as crypto market volatility.
In its official statement, Anchorage stated that the restructuring is aimed at fueling the parts of its business that are most essential to its clients in the current and anticipated marketplace.
The crypto bank further described the layoffs as “a strategic realignment to better focus our resources”.The bank also added that the strategic adjustments that it is undertaking currently has been developed over the course of a several months-long review process and are in response to an evolving landscape facing the crypto industry at-large.
While stating that the need for better crypto infrastructure is increasing, Anchorage added, “For us, that means focusing resolutely on our status as an unequivocal qualified custodian, among other safe and regulated ways for institutions to participate in the digital asset ecosystem.”
Anchorage Digital was also the first federally chartered cryptocurrency bank, receiving approval from the Office of the Comptroller of the Currency in 2021. Anchorage layoff comes amid the United States facing one of its biggest banking ever as top banks Silicon Valley Bank and Signature bank were shut down and taken over by regulators.
Anchorage digital deciding to lay off 20% of its staff is, however, not the biggest crypto layoff the space has witnessed in recent months. Earlier this year, crypto exchange Coinbase laid off 950 employees — around 20% of its workforce, citing the continued downturn in the crypto market.
Blockchain.com and Crypto.com ConsenSys are some other prominent firms in the crypto space which has laid off a significant portion of their staff in recent months, citing unfavorable market conditions. In February, Dapper Labs also let go of another 20% of its staff after laying off 22% of its staff in November.