Cryptocurrency exchange, Blockchain.com announced on Thursday that it was cutting 25% of its workforce, equating to about 150 people. The company cited the harsh bear market conditions and the need to absorb financial losses.
The exchange recently revealed it was dealing with a $270 million shortfall from lending to beleaguered hedge fund, Three Arrows Capital. The exchange explained that it will close its Argentina-based offices and cancel team expansion plans in several countries.
Some 44% of the affected employees are in Argentina, 26% in the U.S., 16% in the U.K. and the rest in other countries, the company said. A representative of the firm, in an interview with CoinDesk via email, stated that the reduction brings the firm’s staffing back to January levels.
What you should know
- Blockchain.com has expanded rapidly in the past 16 months, growing from 150 employees to more than 600. The firm’s fundraising efforts will absorb the financial impact of the collapse of Three Arrows Capital, the Blockchain.com representative said.
- Blockchain.com isn’t the first crypto firm to announce job cuts as other high-profile crypto companies have announced job cuts as the bear market continues to bite the industry.
- Crypto firms are letting go of a part of their workforce amid bearish market conditions. Coinbase laid off over 1,100 employees in June, with exchanges ByBit, Huobi, Banxa, and several others letting go of staff in the past month.
- Blockchain.com, which is one of the oldest firms in the crypto industry, is also shrinking its institutional lending business, halting all mergers and acquisitions, placing a pause on efforts to expand gaming and slowing its non-fungible token (NFT) marketplace.
- The firm said its most active demand was coming from Europe, the U.S. and Africa, as opposed to Latin America. It also said it was receiving more demand from brokerage, rather than gaming.
Executive salaries and CEO compensation are also being reduced, the company representative said. Consumer revenue remains active and strong, while institutional revenue is flat and will need time to recover, the representative added.
The firm stated that severance benefits ranging from four weeks to 12 weeks will be offered to those who are laid off, depending on the country, as will job replacement assistance through a third party to U.K. and U.S. employees.
