Crypto layoffs: Web3 company Moralis to fire staff to cut costs

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Key Takeaways

  • The Moralis co-founder states the move comes in response to significant economic change, shifting customer and market priorities
  • Coinbase, Huobi, and Genesis, among others, have also laid off staff this year.

Moralis-Stockholm-based Blockchain infrastructure company became the latest company in the crypto space to reduce its headcount. As part of its cost-cutting measures, the company has decided to cut jobs.

Ivan Liljeqvist-Crypto content creator and co-founder of Moralis stated that the move comes in response to significant economic change, shifting customer and market priorities, 

“We understand that this is a challenging time for each person impacted. The senior management team is committed to providing generous severance packages and conducting this process with empathy and transparency,” Liljeqvist told the media.

However, the total number of people fired is yet to be disclosed by the firm. The co-founder stressed that irrespective of the difficulties in the market, the company remains confident in both the strength of its mission and the opportunities in front of them.

Despite being a relatively new Web3 development platform launched only in 2021, Moralis was able to get $40 million in a Series A funding round in May 2022.The company’s angle list investors include big names such as Fabric Ventures, Coinbase Ventures, and Dispersion Capital, among others

Moralis is not the first crypto firm in recent months to lay off staff. In fact, crypto layoffs are becoming increasingly common as unfavorable market conditions keep persisting.

Earlier this year, Coinbase Global Inc CEO Brian Armstrong announced that the firm was about 950 employees, or about 20% of its workforce, to combat crypto winter. Crypto lender Genesis which went bankrupt, also fired 30% of its staff in the first round of layoffs in 2023.

Singapore-based crypto exchange Huobi also cut staff by 20% this year. On January 13, announced that it is cutting its workforce by about 20%. Cryptocurrency brokerage is another firm that laid off 28% of its workforce, about 110 employees.

Layoffs are expected to continue in the digital asset space if market conditions don’t turn in their favor soon. As per experts, the unrelenting crypto winter is likely to make more firms resort to cost-cutting measures like reducing headcount to stay afloat.

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Saniya Raahath
Saniya Raahath

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