Crypto lender BlockFi cuts staff by ‘roughly 20%’

Crypto lending firm BlockFi said Monday that it is laying off “roughly 20%” of its staff.

In a blog post, penned by co-founders Zac Prince and Flori Marquez, the company cited “market conditions that have had a negative impact on our growth rate and a rigorous review of our strategic priorities.” BlockFi said its team had grown to more than 850 people.

“Since Q1 of 2022, the macroeconomic environment has shifted dramatically, sparking a dramatic pull back in equity and crypto markets. As a result, our number one goal has been to achieve profitability so that we can own our destiny as we navigate what many expect to be an extended global recession,” the company said, citing efforts to reduce spending on marketing and slowing its headcount growth, among other areas.

“Clients should not experience any material disruption to our platform, products or services; you will receive the same great service you have come to expect from BlockFi,” the company said.

The Block reported last week that BlockFi is raising a down round at a $1 billion valuation.

Other firms, including Gemini, Klarna and Bitso, have moved recently to trim employee numbers. Coinbase drew controversy earlier this month when it moved to rescind job offers as part of an effort to cut costs.