bitcoin and cryptocurrency exchange Blockchain.com said on Thursday it has laid off 150 jobs, roughly 25% of its workforce.
Cryptocurrency Exchange Blockchain.com Loses Due to Three Arrows Capital Collapse
The company cited harsh bear market conditions and the need to face financial losses. The exchange in question recently announced that it was grappling with a $270 million deficit from lending to embattled hedge fund Three Arrows Capital.
Blockchain.com said it will close its Argentina-based offices and cancel its team expansion plans in various countries. The company said about 44% of affected workers were in Argentina, 26% in the US, 16% in the UK and the rest in other countries.
A representative said via email that the layoff brought the firm’s headcount back to January levels.
Blockchain.com has grown rapidly in the past 16 months, growing from 150 employees to over 600. The Blockchain.com representative said the firm’s fundraising efforts will offset the financial impact from the collapse of Three Arrows Capital.
Other high-profile cryptocurrency companies also made several layoffs during the bear market.
Company Goes Downsizing in Other Areas
Blockchain.com, one of the oldest firms in the crypto industry, is also downsizing its corporate lending business, halting all mergers and acquisitions, suspending efforts to expand into the gaming industry, and shrinking the non-fungible token (NFT) market, according to a statement.
The firm said its most active demands come from Europe, the USA and Africa, as opposed to Latin America. He also said that he received more demand from the brokerage industry rather than the gaming industry.
The company representative stated that executive salaries and CEO compensation were also reduced. The representative added that consumer revenues continue to be active and strong, while corporate revenues are flat and will need time to recover.
*Not investment advice.