On Monday, the cryptocurrency lending company Blockfi announced that “market conditions” have had a “negative impact” on the firm’s business and it will be laying off “roughly 20%” of its staff. Blockfi’s co-founders Zac and Flori Prince wrote the message. This follows several other well-known crypto firms that cut back their employees in response to the bear markets.
Blockfi to Lay off ‘Roughly 20%’ of Its Workforce
These digital currencies aren’t very hot and have fallen below $1 trillion. Over the last 24 hours, crypto’s entire economy lost more than 14% USD. Crypto prices have steadily dropped for weeks on end and Monday’s market rout was quite gruesome. On Monday, the leading cryptocurrency asset Bitcoin (BTC), fell to $22,600. A multitude of alternative digital assets also saw further losses. Amid the last few weeks of the crypto economy’s bear market downturn, digital currency companies have been laying off staff.
Blockfi, which noted roughly 20% of its employees would be laid off on June 13, joined the ranks of other companies that were laying people off. “We’ve been through several tough days at Blockfi in the past, but today is probably the hardest,” the Blockfi co-founders wrote. “Like many others in the tech industry, we have been impacted by the dramatic shift in macroeconomic conditions worldwide. We find ourselves in a difficult position today, and must reduce our staff. This is not a decision we take lightly and candidly is one that brings us great sadness.”
Prince and Marquez added:
The company is reducing its headcount by around 20%. It will have an impact on all of the employees. Market conditions have had a detrimental impact on our growth rate. We also reviewed our strategic priorities and made this decision.
Co-Founders Insist ‘Blockfi Is Here for the Long Haul’
Bitso recently announced layoffs, and Buenbit also cut back its staff. Furthermore, Coinbase revealed it had to “rescind a number of accepted offers,” and Gemini cut its staff by 10%. Rain Financial, a crypto business that offers Latin American cryptocurrency exchange 2TM, has also reduced its employee count.
On Monday, the Blockfi co-founders stressed that the decision was painful for Blockfi’s management. “Today is a painful day for Blockfi but more so for employees who we have to part ways with,” the blog post says. “We are doing everything in our power to treat all of our impacted colleagues with the empathy and compassion that they deserve.”
Despite the setback, Blockfi’s co-founders remarked that the company will be sticking around for a long time. “For our remaining 600+ colleagues and our clients, partners, and stakeholders who have supported us worldwide – we are steadfast in our commitment to ensure Blockfi is here for the long haul,” the co-founders said.
Blockfi’s decision to lay off 20% of its employees because the market is not favorable for the company has elicited mixed reactions. Comment below and let us know how you feel about the subject.
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