BlockFi and Crypto.com Lay off Staff Amid Market Meltdown

Daniel Attoe
Daniel Attoe

Updated · Jun 14, 2022

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BlockFi said on Monday that it would reduce its headcount by 20%. On the other hand, Crypto.com will cut 5% of staff from its books.

Massive Staff Layoffs

Crypto platforms BlockFi and Crypto.com will each lay off hundreds of employees. Both major players have blamed the unrelenting conditions that have seen the crypto market continue to slump.

BlockFi's chief executive Zac Prince traced the layoffs on Monday to a “dramatic shift in macroeconomic conditions”.

Prince assured the platform’s customers that their funds were safe. He added that “all platforms and products continue to operate normally.”

Twenty percent of BlockFi’s employees translates to anything between 170 to 200 people.

The cryptocurrency industry exploded at the peak of the pandemic, leading to platforms increasing their workforce to keep up with the hype. 

But it has undergone a sharp decline in 2022, resulting in the loss of a large chunk of market capitalization. Bitcoin, the biggest cryptocurrency, has dipped to levels not seen in years. 

On Sunday, crypto lender Celsius announced that it was pausing all withdrawals, inter-account transfers, and swaps after the price of its native token plummeted. 

Crypto.com said it would lay off 5% of its employees, or around 260 people. CEO Kris Marszalek justified the decision based on the crypto exchange’s efforts to maintain its growth.

“That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term by making targeted reductions of approximately 260 or 5% of our corporate workforce,” he said.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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