The crypto lending firm, BlockFi announced lay off of about 20% of its total employees i.e around 170-200 employees amid the market crash.
In the year 2020, BlockFi had a staff of 150 people which rose to about 850 employees. Zac Prince, the company’s chief executive tweeted out the reason for reducing the headcount as being impacted by the ‘dramatic shift in macroeconomic conditions’, which have had a negative impact on BlockFi’s growth rate.
Company further said, “We are doing everything in our power to treat all of our impacted colleagues with the empathy and compassion that they deserve.”
As mentioned above, the crypto firm made the decision as bitcoin is down roughly 65% from its all-time high in November, while other smaller coins saw even a steeper fall.
Zac also said that the layoff wouldn’t affect their quality of service and clients will not experience any changes to the quality they have come to expect. Clients’ funds are secured and all platforms as well as products will continue to function normally.
However, Zac also listed out the way the firm has been managing costs apart from slowing headcount growth. For instance, by reducing marketing spend, eliminating non-critical vendors, reducing executive compensation for Zac himself, the founder Flori Marquez and other executives.
Early this month, crypto exchange Coinbase said it would extend its hiring freeze and revoked some accepted offers. Even Gemini announced the laying off of 10% of its employees.
Read also: Michael Saylor’s MicroStrategy Down $1B on its Bitcoin Holdings
