Blockchain.com is to cut its workforce by a quarter, sources claim
Crypto exchange Blockchain.com will cut its workforce by 25%, according to multiple sources.
The cryptocurrency exchange had expanded rapidly during the bull market, taking on 450 employees over the past 16 months. Now the company intends to reverse of course, reducing their 600 strong team by around 150 workers, or 25% of the workforce.
The U-turn means that Blockchain.com will cease all operations in Argentina, and will cancel any further expansion plans for the foreseeable future.
Of the workers cut, 44% of the positions will be in Argentina, with 26% and 16% of the cuts in the USA and the UK respectively. The remaining roles the company will cut will be from workers in other territories.
Bear market woes
Blockchain.com is by no means the only firm to make cuts during the last bear cycle. Coinbase, BlockFi and Crypto.com have all been among the firms that have laid off workers.
Blockchain.com also had significant exposure to fallen venture capital (VC) firm Three Arrows Capital (3AC). The exchange was among the creditors pushing to liquidate 3AC after the VC defaulted on $270 million in loans.
A spokesperson for Blockchain.com summed up their anger: “We believe Three Arrows Capital defrauded the crypto industry and intend to hold them accountable to the fullest extent of the law.”
With any chance of retrieving the money a long way off, the stock exchange has been forced to make difficult decisions. While some employees have been shown the door, many of those who remain have been asked to take a cut.
Management salaries and the CEO’s salary have been reduced as part of a package of measures the company is taking to strengthen its long-term position.
The company further intends to shrink its institutional lending division while maintaining its core business, de-emphasizing games and non-fungible tokens (NFTs). As part of the plans, Blockchain.com will focus on existing customers, reducing its marketing and advertising budget to zero.
Dreaming of spring
Blockchain.com now plans to scale back for the winter as the company returns to January 2022 staffing levels. The center says that employees who have been cut will not be left out in the cold without help. Retrenched workers will receive four weeks to 12 weeks of severance pay, as well as job replacement assistance.
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