The current bearish market trend is affecting both investors and companies in the crypto industry. While investors scratch their heads in losses, firms such as crypto lending exchange BlockFi are taking steps to reduce their overall expenditures.
BlockFi Reduces Workforce by 20%
BlockFi announced on Monday that it is downsizing its workforce by 20% due to unfavorable market conditions. The company noted that the move was made to meet up with its financial demands and attain its intended profits.
While the company had about 150 workers at the end of 2020, it has hired about 700 talents, bringing its total workforce to 850. However, with the recent action, BlockFi’s headcount is now about 600.
The lending platform said it has also made provisions to help retrenched employees gain employment in other firms. BlockFi’s “Our People” team will assist them by sharing their contact details with hiring companies, thereby easing the stress of securing new jobs.
BlockFi said it has also reduced its marketing budget and executive compensation as well as eliminated non-critical vendors since the start of the bear market. The company then reassured users that the layoffs would not affect its services.
“We know this is a hard day, but BlockFi will persevere. Our ambition and commitment remains the same: to provide crypto-powered financial services that accelerate prosperity worldwide,” BlockFi founders Zac Prince and Flori Marquez said.
Interestingly, Kris Marszalek, CEO of crypto exchange CryptoCom, recently revealed that the company will be laying off about 260 employees, representing 5% of the firm’s workforce. This move is also influenced by the bearish crypto market.
Binance on Hiring Spree
Meanwhile, unlike other crypto companies, Binance believes now is the best time to hire new talent and even acquire more firms.
As reported earlier today, Binance CEO Changpeng Zhao said the exchange has a strong war chest to withstand the crypto winter and that the company is on a hiring spree.
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