Protocol Labs – an early pioneer of blockchain and web3 technology – has let go of more than 89 people, which amounts to roughly one-fifth of its present staff count.
Protocol Labs Is Letting Go of A Ton of People
The firm is backed by financial players like Andreesen Horowitz. Protocol states the decision to let people go has to do with the present market conditions and the overall bearish sentiment of the digital currency industry. At this stage, more than 26,000 people employed in the crypto space have lost their jobs.
Per recently filed documents, the company’s decision has been made clear via the following words:
The decision to let go of a number of valued members of our team is a result of the current market conditions and the macroeconomic challenges we are facing, specifically in relation to Filecoin dynamics.
This would all be fine except for one major aspect… Not long ago, the company earned more than $257 million in new funding. A huge surge in financial revenue, yet all of a sudden the enterprise says it’s not able to keep its present employees onboard? Things aren’t quite adding up for a lot of analysts.
Protocol says the money is going towards building out a network of personal computers that share unused computing power in exchange for the Filecoin currency. The funds came through an initial coin offering (ICO), and roughly $52 million of the money in question derived from pre-sales of the asset to major financial institutions like Union Square Ventures and Sequoia Capital.
Executives of Protocol Labs say they aren’t just shoving unwanted employees out the door, nor will these individuals not be taken care of. Many of the employees leaving will continue to receive pay long after their final days with the firm. In addition, they’ll also receive COBRA-related healthcare benefits, immigration support, and job placement support.
Still, the problem remains that the firm recently got its hands on quite a bit of money, yet it claims it’s not in a good enough position to keep all its current employees in their present positions. The situation is a familiar one at this point, with many crypto-centered companies over the past few months – like Huobi Global, Coinbase, and Gemini – having to release several people from employment to contend with dipping crypto market sentiment.
This Keeps Happening!
Coinbase and Gemini recently had to let go of thousands of additional employees after initially doing so in the summer of last year. As two of the biggest crypto trading platforms in the world, it’s shocking and scary to see two major companies fall victim to bearish conditions like this.
Not long ago, smaller firms – such as Blockchain.com – joined the ranks, with these firms letting go of as many as 25 percent of their staffers.
Source: https://www.livebitcoinnews.com/blockchain-and-web3-firm-protocol-labs-joins-layoff-ranks/