Crypto layoffs continue as Blockchain.com cuts 25% of staff
Crypto trading firm Blockchain.com has cut its workforce by 25% according to a CoinDesk report, which is roughly 150 employees. The crypto firm also noted that it would halt expansion plans in several countries, and it would halt operations at its Argentina offices.
This measure is to reclaim financial losses
Blockchain.com, one of the oldest crypto firms, has joined the train of crypto firms laying off their workers, citing the severity of market conditions and the need to recoup financial losses. This could refer to the company’s problems with beleaguered hedge fund Three Arrows Capital.
The company said on Thursday that 44 percent of the affected employees are in Argentina, 42 percent are in the United States and the United Kingdom, while the rest are from other parts of the world. The firm expanded its workforce from 150 employees to over 600 in the last 16 months.
Alongside the layoffs, Blockchain.com will also reduce executive salaries and CEO compensation, but affected employees will receive severance pay and UK and US employees will also be assisted with workers’ compensation through a third party.
The firm will also cut back on things like its institutional lending business, its gaming push and its non-fungible token (NFT) marketplace. Blockchain.com told CoinDesk that it received more demand from Europe, Africa and the United States than Latin America.
Is 2022 the year of layoffs for crypto workers?
This year, since the crash in the market, where almost two trillion was wiped from the entire market, many people working in the crypto industry have lost their jobs.
Just last month, crypto exchange Coinbase said it was “overhiring” and laying off 18 percent of its staff, similarly, so-called number one NFT marketplace Opensea laid off 20 percent of its staff. Other companies such as Gemini, Bitso, Bybit, Rain Financial and Brazil-based 2TM also did the same.
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