Blockchain.com to Downsize Workforce by 28%

The UK-based crypto brokerage firm Blockchain.com is set to cut down its workforce by 28%, representing about 110 workers. The firm will now be left with a staff headcount of 280.

This comes as several crypto firms have made similar moves as part of plans to reduce expenses as the bear market continues.

Blockchain.com Reduces Headcount by 28%

In an email regarding the latest move by the crypto custodian, the slashing of workers will help the firm to “reduce operational costs.”

“The crypto ecosystem is facing significant headwinds as its course corrects from the challenges of the last year, [. . .] To better balance product offerings with demand, we’ve made the difficult decision to reduce operating costs and headcount to rightsize the company,” a Blockchain.com representative stated.

Affected employees will be provided with severance packages. Such packages are designed to compensate and benefit workers laid off from a company. Sometimes, severance packages include assisting affected workers in securing new jobs.

Blockchain.com’s latest lay-off trails the company’s 25% staff reduction in July. This represented around 150 workers. The company cited a $270 million exposure to bankrupt crypto hedge fund Three Arrows Capital (3AC). This affected the firm’s finances, which was valued at $14 billion in March 2022.

Crypto Firms Conduct Staff Reduction

Since the start of the year, several other crypto companies have reduced their workforce. The most recent is the crypto exchange Coinbase, which slashed 20% of its headcount on Tuesday. It represents 1,100 workers across its offices around the world.

Troubled crypto lender Genesis, on its part, laid off more than 200 workers, representing 30% of its entire workforce. The firm is also considering filing for Chapter 11 bankruptcy protection.

Another crypto exchange, Huobi, cut down 20% of its workforce. While the firm failed to disclose the total number of employees affected, reports show that it had 1,200 workers before the layoff.

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