• Blockchain.com announced it is cutting its workforce by 28%, leading to approximately 110 employees being laid off.
• This is the second round of layoffs by the company in less than a year, following a round of 150 employees being let go in July 2020.
• Other leading crypto companies, such as Coinbase and Crypto.com, have also had to cut their workforces due to the crypto winter.
The past year has been a tumultuous one for the crypto industry, with the market witnessing a massive correction in its prices that has had a severe impact on many businesses within the sector. This has even extended to some of the biggest companies in the industry, with many of them having to lay off a large portion of their staff in order to reduce operating costs.
One of the most recent companies to cut its workforce is Blockchain.com, one of the leading crypto brokerage companies in the world. The company announced that it is reducing its workforce by 28%, leading to approximately 110 employees being laid off. This is the second round of layoffs by the company in less than a year, following a round of 150 employees being let go in July 2020. Blockchain.com cited the current market climate as the reason behind the layoffs, particularly its massive losses of $270 million in loans it made to fund the now-bankrupt Three Arrows Capital hedge fund.
The effects of the crypto winter have been felt by other leading crypto companies as well. Earlier this week, major crypto exchange Coinbase announced its plans to terminate one-fifth of its current workforce. Singapore-based Crypto.com also laid off 20% of its global workforce in order to streamline operations and reduce costs.
All affected employees at Blockchain.com will be receiving severance packages, although the packages will vary depending on the country the employee resides in. The company currently has around 280 employees left, after beginning 2021 with 160 members.
The crypto industry has had a choppy start to 2022, and the effects of the crypto winter are still being felt by many businesses within it. It remains to be seen if companies like Blockchain.com will be able to weather the storm and come out stronger on the other side.