Blockchain.com, a Cryptocurrency exchange, said on Tuesday that it is cutting 25% of its workforce, which makes up about 150 people. 44% of the laid off employees are in Argentina, 26% in the U.S., 16% in the U.K, while the remaining are from the rest of the world. The company said that the harsh market conditions and the need to absorb financial losses influenced this decision. Recently, Blockchain revealed that it had a $270 million loss because it lent money to bankrupt crypto exchange firm Three Arrows Capital.
The Cryptocurrency exchange has stated that it would close down its Argentina-based offices and cancel the initial expansion plans in several countries.
This reduction brings the number of staff in the firm to the number it was around the beginning of the year before its expansion.
A representative of the crypto exchange said that, Blockchain.com has expanded rapidly in the past 16 months, growing from 150 to more than 600 staff. The firm’s fundraising program will also suffer loss from the firm’s financial relationship with Three Arrows Capital.
Sadly, Blockchain.com, one of the oldest firms in the crypto industry, is shrinking its institutional lending business, halting all M&A, and efforts to expand gaming. It has also slowed down its non-fungible token (NFT) marketplace.
Furthermore, Executive salaries and CEO compensation have also been reduced. while Consumer revenue remains active and strong; institutional revenue is currently flat and will recover in good time, the representative added