Blockchain.com Slashes 25% Workforce amid Crypto Meltdown
Brian Njuguna Jul 22, 2022 02:30
Massive layoffs continue engulfing the crypto market. Blockchain.com took the latest actions by reducing its workforce by 25%.
Massive layoffs continue engulfing the crypto market. Blockchain.com took the latest actions by reducing its workforce by 25%.
Citing harsh bearish conditions, the crypto exchange laid off approximately 150 people and shut down its offices based in Argentina.
Blockchain.com has been on a rapid expansion drive in the last 16 months as a pioneer firm in the cryptocurrency industry, with its staff jumping from 150 to 600. Per the announcement:
“Some 44% of the impacted employees are in Argentina, 26% in the U.S., 16% in the U.K., and the remaining from the rest of the world.”
The recent collapse of crypto hedge fund Three Arrows Capital (3AC) dented the exchange’s financial position after losing $270 million.
Blockchain.com CEO Peter Smith mentioned in a letter to shareholders, “Three Arrows is rapidly becoming insolvent, and the default impact is approximately $270 million worth of cryptocurrency and U.S. dollar loans from Blockchain.com.”
The exchange has also stopped all mergers and acquisitions (M&A), reduced institutional lending, and slowed its establishment in the non-fungible token (NFT) marketplace.
The crypto meltdown being experienced has seen Bitcoin (BTC) shed more than 65% of its value from the all-time high (ATH) price of $69,000 recorded in November last year.
As a result, the market downturn has triggered significant layoffs in the crypto space. For instance, crypto exchange Crypto.com and lending platform BlockFi recently announced plans to cut over 400 jobs globally.
Furthermore, crypto exchange Gemini made the second round of layoffs, citing "turbulent market conditions." Therefore, it seems the layoffs have mostly affected cryptocurrency exchanges.
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