The company that trades digital assets announced it would close its headquarters in Argentina and put an end to its growth ambitions in a number of other nations.
Blockchain.com, a cryptocurrency exchange, said on Thursday that it will be laying off 150 employees, or 25 percent of its workforce.
The business claimed as reasons the severe bear market circumstances and the requirement to sustain financial losses. The exchange recently disclosed that financing to troubled hedge fund Three Arrows Capital had left them with a $270 million deficit.
Blockchain.com said it would close its headquarters in Argentina and scrap its intentions to expand its workforce there. According to the corporation, around 44% of the impacted employees are in Argentina, 26% are in the United States, 16% are in the United Kingdom, and the remainder is in other nations.
A spokesman from the company wrote to CoinDesk via email to say that the reduction returns the staffing to January levels.
In the last 16 months, Blockchain.com has dramatically increased its staff size, going from 150 to over 600. The financial impact of Three Arrows Capital’s failure will be offset by the company’s fundraising activities, according to the Blockchain.com official.
As the crypto business continues to suffer from the bear market, several well-known crypto companies have announced layoffs.
One of the first companies in the cryptocurrency sector, Blockchain.com, is also reducing its institutional loan business, stopping all mergers and acquisitions, pausing attempts to increase gaming, and decreasing its non-fungible token (NFT) marketplace.
In contrast to Latin America, the company said that demand was most active in Europe, the United States, and Africa. Additionally, it said that brokerage was driving up demand rather than gaming.
According to the firm official, the CEO’s salary and executive wages are also being decreased. According to the spokesman, consumer revenue is still active and robust, but institutional income is flat and will take some time to recover.
Depending on the nation, workers who are let off will be given severance packages of four to twelve weeks, as well as job replacement help through a third party for U.K. and U.S. employees.
