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Mass Layoffs Continue as Blockchain.com Sheds 25% of Workforce

Finance Magnates

Cryptocoins News / Finance Magnates 214 Views

Blockchain.com, a Luxembourg-headquartered cryptocurrency exchange, announced on Thursday that it was shedding its teams across the world by 25%.

This percentage represents about 150 employees of the organization, CoinDesk reports.

The highest number of affected employees (44%) are based in Argentina where the exchange said it will be closing down its offices.

Outside of Argentina, 26% of them are based in the US, 16% in the UK and other locations around the world.

Blockchain.com said it took the decision as a result of the hard-hitting bear market.

It also wants to fend off the financial losses it has incurred.

Finance Magnates reported earlier this month that Blockchain.com may end up losing $270 million over its loans to collapsed cryptocurrency hedge fund Three Arrows Capital (3AC).

A British Virgin Island court last month ordered that 3AC be liquidated.

A representative of Blockchain.com, which recently hit a $14 billion valuation, told the outlet that the layoffs will revert the exchange's staff strength to its January 2022 position.

Additionally, the representative said the salaries of executives including chief executives will be decreased.

The disengaged staff are being offered 4 to 12 weeks of several benefits, depending on their base country, the exchange's representative said.

Other Measures

In April, Blockchain.com inked a sponsorship deal with the United States’ National Football League team, Dallas Cowboys.

However, with the development, the exchange said it will slow down on its non-fungible token marketplace.

In March, Blockchain.com acquired the trading and execution business of Altonomy, a Singapore-based company working in the digital asset ecosystem.

However, the company is now planning to shelf its merger and acquisition plans. Furthermore, it is cutting down on lending to institutions and businesses.

Blockchain.com’s job cut follows the current industry trend. Cryptocurrency exchanges Coinbase, Gemini and BlockFi have also announced mass layoffs in the past few months.

On the contrary, exchanges such as Binance and KuCoin, are maintaining their headcounts.

Speaking on the trend, stakeholders and experts who spoke to Finance Magnates in June pointed to the unpreparedness on the part of industry actors.

Blockchain.com, a Luxembourg-headquartered cryptocurrency exchange, announced on Thursday that it was shedding its teams across the world by 25%.

This percentage represents about 150 employees of the organization, CoinDesk reports.

The highest number of affected employees (44%) are based in Argentina where the exchange said it will be closing down its offices.

Outside of Argentina, 26% of them are based in the US, 16% in the UK and other locations around the world.

Blockchain.com said it took the decision as a result of the hard-hitting bear market.

It also wants to fend off the financial losses it has incurred.

Finance Magnates reported earlier this month that Blockchain.com may end up losing $270 million over its loans to collapsed cryptocurrency hedge fund Three Arrows Capital (3AC).

A British Virgin Island court last month ordered that 3AC be liquidated.

A representative of Blockchain.com, which recently hit a $14 billion valuation, told the outlet that the layoffs will revert the exchange's staff strength to its January 2022 position.

Additionally, the representative said the salaries of executives including chief executives will be decreased.

The disengaged staff are being offered 4 to 12 weeks of several benefits, depending on their base country, the exchange's representative said.

Other Measures

In April, Blockchain.com inked a sponsorship deal with the United States’ National Football League team, Dallas Cowboys.

However, with the development, the exchange said it will slow down on its non-fungible token marketplace.

In March, Blockchain.com acquired the trading and execution business of Altonomy, a Singapore-based company working in the digital asset ecosystem.

However, the company is now planning to shelf its merger and acquisition plans. Furthermore, it is cutting down on lending to institutions and businesses.

Blockchain.com’s job cut follows the current industry trend. Cryptocurrency exchanges Coinbase, Gemini and BlockFi have also announced mass layoffs in the past few months.

On the contrary, exchanges such as Binance and KuCoin, are maintaining their headcounts.

Speaking on the trend, stakeholders and experts who spoke to Finance Magnates in June pointed to the unpreparedness on the part of industry actors.


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