Blockchain.com is cutting 25% of its workforce due to the ongoing crypto winter, CoinDesk has reported.
According to reports, the company is closing its headquarters in
Argentina and abandoning its intentions to open offices in other nations.
Blockchain.com Cutting Workforce
According to a Thursday article from CoinDesk, Blockchain.com is the most recent cryptocurrency company to reduce its employment as a result of challenging market conditions.
According to an email from a company spokesperson, the company is laying off 25% of its employees, or about 150 individuals, in reaction to the prolonged crypto winter, according to CoinDesk.
According to reports, the company is closing its operations in Argentina and scrapping its intentions to expand to other nations as part of its survival strategy for the upcoming months.
In accordance with the CoinDesk analysis, 44% of persons impacted by the reduction are based in Argentina, 26% in the United States, 16% in the United Kingdom, and the others are dispersed throughout the world.
The impacted employees will reportedly receive severance pay that spans from 4 weeks to 12 weeks, depending on where they are located. In addition to the staff layoffs, the CEO's salary would also be reduced, according to CoinDesk.
Other measures Blockchain.com is implementing include a slowdown in institutional lending, mergers, and acquisitions, and its gaming and NFT ventures, the report said.
In reaction to unfavorable market conditions, other cryptocurrency companies have made similar announcements to Blockchain.com. In recent weeks, companies including Coinbase, BlockFi, and Gemini have all made significant cuts of their own.
However, Blockchain.com has suffered a particularly hard hit due to the market decline. It was discovered earlier this month that the company had exposure to Three Arrows Capital prior to the hedge fund's demise.
Although Blockchain.com CEO Peter Smith stated that the company was liquid and solvent in a letter to shareholders at the time, Three Arrows defaulted on $270 million worth of loans from the company as it neared insolvency.
At the time, Coinbase and other cryptocurrency exchanges made public announcements about worker reductions, but Blockchain.com has kept silent. At the time of publication, Crypto Briefing has not heard back from the company after contacting them for comment.
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