On Monday, cryptocurrency lender Blockfi announced that “market conditions” have had a “negative impact” on the company’s business and it will lay off “roughly 20%” of its staff. The message, written by Blockfi co-founders Zac Prince and Flori Marquez, follows a slew of well-known crypto companies cutting employees due to bear markets.
Blockfi will lay off “roughly 20%” of its employees
The value of digital currencies has not been so hot lately, with the crypto economy dipping below the $1 trillion territory on June 13. The entire crypto economy has shed more than 14% in U.S. dollar value over the past 24 hours. Crypto prices have been steadily declining for weeks, and Monday’s market routing was quite dismal. Major crypto assetBitcoin (BTC)fell to a low of $22,600 on Monday, while countless other alternative digital assets saw deeper losses. During the last few weeks of the crypto economy’s bear market downturn, digital currency companies have laid off staff.
On June 13, Blockfi joined a slew of companies laying off workers, as it noted that about 20% of its staff would be let go. Blockfi’s co-founders wrote that “we have had many tough days in the past at Blockfi,but today is probably the toughest”. “Like many others in the technology industry, we have been affected by dramatic changes in macroeconomic conditions around the world. We are in the agonizing position of having to reduce our workforce today. This is not a decision that we take lightly, and frankly it causes us great sadness.”
Prince and Marquez’s message adds.
We are reducing our workforce by approximately 20% and this reduction will affect all of our teams. This decision was driven by market conditions that have negatively impacted our growth rate and a rigorous review of our strategic priorities.
The co-founders insist that “Blockfi is in it for the long term”
Just recently, Bitso announced layoffs and Buenbit cut staff as well. Additionally, Coinbase revealed that it had to “rescind many of its accepted offers”and Gemini has cut 10% of its staff. Crypto business Rain Financial and Latin American crypto exchange 2TM also cut their workforces.
On Monday, Blockfi’s co-founder stressed that the decision was painful for Blockfi’s management team.” Today is a hard day for Blockfi, but it is even harder for the employees who have to part ways.” the blog post said.” We are doing our best to treat all affected colleagues with the empathy and compassion they deserve.”
Despite this setback, Blockfi’s co-founder has stated that the company will be around for a long time. The co-founder said, “For the remaining 600+ colleagues and for the clients, partners, and stakeholders who have supported us around the world – we are unwavering in our commitment to ensure that Blockfi will be here for a long time.”
What do you think about Blockfi laying off 20% of its employees due to deteriorating market conditions? Let us know what you think about this subject in the comments section below.
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