Protocol Labs Dismisses 21% of Employees to Counter Crypto Winter

• Protocol Labs announced that the company has decided to lay off 21% of its employees.
• The company’s CEO Juan Benet released a blog post announcing the company’s new move.
• He stated that the decision is made to tackle the worse economic conditions.

Protocol Labs, the open-source research, development, and deployment laboratory, announced that the company has decided to discharge almost 21% of its employees in order to tackle the unfavorable conditions of the long crypto winter.

Notably, on February 3, Juan Benet, the CEO of Protocol Labs, in a blog post, announced that the company has to focus more on new strategies to confront the “extremely challenging economic downturn, worldwide, and especially in the crypto industry”.

He added that the macro winter has impacted to worsen the crypto winter, “making it more extreme and potentially longer than our industry expected”:

High inflation leading to high-interest rates, low investment, and tougher markets have rocked companies and industries globally…Millions of companies around the world have had to adapt to this dynamic landscape and prepare for a longer downturn. No company is unaffected”

In addition, the blog cited the various efforts Protocol Labs has made to confront the winter’s challenges. Importantly, the company has reduced team budgets, infra spend, grand programs, investments, etc.

While narrating the steps the company has taken to avoid the extreme conditions, Benet told that the reduction of employees may affect the PLGO teams:

Although we worked hard to avoid this, we’ve made the difficult decision to reduce our workforce by 89 roles (approximately 21%). This impacts individuals across PLGO teams (PL Corp, PL Member Sevices, Network Goods, PL Outercore, and PL Starfleet). We’ve had to focus our headcount against the most impactful and business-critical efforts.

Significantly, Benet commented that the company has been successful in “reducing costs while maintaining services and growing projects”. Also, he thanked everyone who cooperated and contributed to the efforts of Protocol Labs.

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