Cryptocurrency firm Blockchain.com is laying off 25% of its staff, equating to about 150 roles according to reports by CNBC. The company is said to have had significant exposure to the now bankrupt crypto hedge fund Three Arrows Capital.
Blockchain.com is cutting 150 people from its workforce citing harsh bear market conditions and the need to absorb significant financial losses. The cryptocurrency exchange recently revealed that it had loaned $270 million worth of crypto assets to Three Arrows Capital prior to its collapse and is not expected to see a return on the loan. The company has said that most of the layoffs, about 44%, will affect employees in Argentina while 26% are based in the U.S. and 16% in the U.K. the exchange is also shutting down its Argentinian office and scrapping plans to expand into multiple countries. The reduction will bring the firm’s staffing back to January levels.
Blockchain.com has expanded rapidly over the past 16 months, growing from only 150 employees to more than 600. In further fundraising efforts, the firm is also shrinking its institutional lending business, halting all mergers and acquisitions, pausing efforts to expand gaming, and slowing down its NFT marketplace. A representative also said that executive salaries and CEO compensation are being reduced. The representative added that consumer revenue remains active and strong, but institutional revenue is flat and will need time to recover.
Blockchain.com was founded in 2012 and is a crypto wallet and exchange platform. The firm claims to be responsible for nearly a third of all Bitcoin transactions through its wallet. It is a privately held company recently valued at $14 billion following a funding round it announced earlier this year. The firm is backed by Baillie Gifford, American hedge fund manager Kyle Brass, and British tycoon Sir Richard Branson.
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Source: https://cryptodaily.co.uk/2022/07/blockchaincom-cuts-25-of-staff-citing-harsh-market-conditions