On Monday, cryptocurrency lending company Blockfi announced that “market conditions” had had a “negative impact” on the company’s operations and that it would lay off “approximately 20%” of its staff. The post written by Blockfi co-founders Zac Prince and Flori Marquez follows a slew of well-known crypto firms cutting staff due to the bear market.
Blockfi to lay off “about 20%” of its workforce
Digital currency values aren’t that hot these days, and the crypto economy slipped below the $1 trillion region on June 13. The entire crypto economy has lost over 14% in USD value over the past 24 hours. Crypto prices have been falling steadily for weeks, and Monday’s market rout was pretty gruesome. The main crypto asset Bitcoin (BTC) slid to a low of $22,600 on Monday, and myriad other alternative digital assets suffered bigger losses. Over the past few weeks of a bear market downturn in the crypto economy, digital currency companies have been laying off staff.
On June 13, Blockfi joined the slew of companies laying off workers, as it noted that around 20% of its staff would be laid off. “We have been through several difficult days at Blockfi in the past, but today is probably the hardest,” Blockfi co-founders wrote. “Like many others in the tech industry, we have been impacted by the dramatic change in macroeconomic conditions around the world. We are in the heartbreaking position of having to downsize today. This is not a decision that we take lightly and frankly is one that brings us great sadness.”
Prince and Marquez’s post adds:
We are reducing our workforce by approximately 20% and this reduction is impacting all teams in the company. This decision was driven by market conditions that negatively impacted our growth rate and a rigorous review of our strategic priorities.
Co-founders insist “Blockfi is here for the long haul”
Just recently, Bitso announced layoffs and Buenbit also reduced its workforce. Additionally, Coinbase revealed it had to “cancel a number of accepted offers” and Gemini reduced its workforce by 10%. Crypto firms Rain Financial and Latin American crypto exchange 2TM have also reduced the number of employees.
On Monday, Blockfi’s co-founders stressed that the decision was painful for Blockfi’s management. “Today is a painful day for Blockfi, but even more so for the employees we have to part ways with,” the blog post read. “We are doing everything in our power to treat all of our affected colleagues with the empathy and compassion they deserve.”
Despite the setback, Blockfi’s co-founders remarked that the company would stick around for a long time. “To our remaining 600+ colleagues and our customers, partners and stakeholders who have supported us around the world – we are unwavering in our commitment to ensuring Blockfi is here for the long haul,” the co-founders said.
What do you think of Blockfi laying off 20% of its workforce due to market conditions negatively impacting the startup? Let us know what you think about this topic in the comments section below.
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