cuts workforce by 20%, cites poor market conditions

Share IT

Key Takeaways

  • In mid-2022, the crypto firm cut 260 employees or 5% of its workforce.
  • CEO stated the recent FTX implosion significantly damaged trust in the industry.

Ever since the start of bear market, crypto firms have been firing staff to cut costs. The latest company n the crypto sector to lay off staff is CEO, Kris Marszalek, has announced the company would be layoff another 20% of its workforce. He cited poor market conditions and “recent industry events as reasons for the layoff.” All impacted personnel have already been notified. These reductions were in no way related to performance, and we extend our deepest gratitude for all their contributions to”, he said.

Detailing reasoning behind layoff, Kris added, “We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory changed rapidly with a confluence of negative economic developments”.

Kris added that the recent FTX implosion significantly damaged trust in the crypto industry.

“It’s for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success,” the Singapore-headquartered’s CEO statement reads.

This is not the first time has reduced its workforce in recent months. In mid-2022, the crypto firm cut 260 employees, or 5 percent of its workforce, owing to the widespread downturn in the crypto market.

Earlier this week, another popular crypto firm Coinbase Global Inc reduced its workforce by about 20%, or 950 employees, as part of a restructuring plan. Coinbase in November also had cut over 60 jobs in its recruiting and institutional onboarding teams, after cutting 1,100 jobs, or 18% of its workforce, in mid-2022.

Crypto lender Genesis had also cut 30% of its workforce in a second round of layoffs in less than six months. Earlier this year, crypto-focused bank Silvergate Capital Corp also slashed its headcount by 40%.

Share IT
Saniya Raahath
Saniya Raahath

Get Daily Updates

Crypto News, NFTs and Market Updates

Can’t find what you’re looking for? Type below and hit enter!