Looking at the challenging market scenarios, Crypto-loan provider BlockFi has decided to lay off 20% of its workforce. This announcement came after the company claimed to have tried ways to cut losses.
Moreover, BlockFi isn’t the only company cutting down its staff. Recently, Crypto.com crypto exchange also stated that they’ll cut down about 5% of their workforce. Besides them, crypto exchanges such as Coinbase and Gemini have also decided to reduce the number of their employees.
Coming back to BlockFi, the team members wrote in a blog post stating their reason for the move. The statement stated:
“We are reducing our headcount by roughly 20% and the reduction impacts every team at the company. This decision was driven by market conditions that have had a negative impact on our growth rate and a rigorous review of our strategic priorities.”
This is majorly due to the pretty underwhelming market circumstances since the first quarter of 2022. It has led to a severe collapse in not only crypto markets but equity markets as well. Moreover, the platform aims to decrease losses by decreasing marketing expenses and CEO salaries. This also comes up with shutting down the personal growth of the company.
Due to such drastic market circumstances, some platforms have even paused transactions. Recently, Celsius Network stated that they have frozen withdrawals and deposits on their platform due to the “extreme” market circumstances.
Moreover, if we take a close look at the entire crypto market in general, we see a glaring point of concern. It is because, since January 2021, it is the first time that the global market value of cryptocurrencies fell below $1 trillion.