Silvergate said that it would lay off approximately 230 employees.
In an SEC filing dated May 12, the company said the layoffs would leave approximately 80 employees at Silvergate to finish liquidating the bank.
“Additional incremental reductions in headcount are expected to occur on each of June 30, 2023, August 30, 2023 and November 30, 2023 or later,” the filing said.
The 80 remaining employees will “focus on implementing the Bank Liquidation, preserving the residual value of the Company’s assets and addressing the regulatory and other inquiries and investigations that are pending with respect to the Company and the Bank.”
According to Pitchbook, Silvergate had approximately 400 employees as of 2022.
In January, the company announced that it was cutting 200 employees, or 40% of its workforce.
Following the job cuts, in March, Silvergate announced its intent to “wind down operations” and voluntarily started liquidating the bank.
It also promised a “full repayment of all deposits.”
The decision to shut down was made just two months after earnings revealed a $1 billion fourth-quarter loss.
The crypto-friendly bank, rumored to be FTX’s primary bank, had faced customer withdrawals in the wake of the FTX crash.
The bank, however, managed to just miss the downturn in the banking sector which saw three US banks fail.
Silicon Valley Bank officially fell two days after Silvergate announced its liquidation, on March 10. The bank run that caused the Feds to step in for SVB also impacted Signature just days later. Then the domino effect caused First Republic Bank to fail.
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Source: https://blockworks.co/news/silvergate-lays-off-230