Crypto lender Genesis Trading has laid off 30% of its workforce due to financial struggles and the threat of bankruptcy, according to The Wall Street Journal report.
The layoffs at Genesis Trading come after the company sent a letter to its clients on Wednesday stating that it would be “reducing costs and driving efficiencies” amid a challenging climate for crypto firms.Â
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” said a spokesperson for Genesis.
Approximately 60 positions were eliminated at Genesis Trading, reducing the company’s workforce to around 145 employees, according to a person familiar with the matter.
The company, which is part of Barry Silbert’s crypto conglomerate and includes Grayscale Bitcoin Trust and mining company Foundry, has been impacted by the market downturn and the bankruptcy of Three Arrows Capital and FTX.
In August, Genesis Trading announced that it would be laying off 20% of its 260-person workforce in an effort to reduce costs. As part of this restructuring, CEO Michael Moro announced that he would be stepping down from his leadership role and transitioning into an advisory position.
The bear market, which has seen the value of many cryptocurrencies decline significantly, has had a major impact on the crypto lending industry. As a result, many companies have struggled to maintain profitability as demand for their services has decreased and competition has increased.
