The move is part of the company’s strategy to survive a potential multi-year bear market.
- BlockFi is firing 20% of its employees due to dramatic market conditions.
- The company is focusing on profitability ahead of what it acknowledges could be a prolonged global recession.
- Other crypto companies such Coinbase have recently made cuts due to the ongoing crypto bleed.
BlockFi is letting go of 20% of its employees due to worsening macroeconomic conditions.
BlockFi Anticipates Extended Global Recession
BlockFi is letting go of 20% of its workforce.
According to a Monday blog post penned by BlockFi founders Zac Prince and Flori Marquez, the company is reducing its headcount in an effort to achieve profitability in a difficult macroeconomic environment. The layoffs will impact every team at the company, the blog post stated.
The post blamed the “dramatic pull back in equity and crypto markets” for forcing BlockFi to “review [its] strategic priorities.” The layoffs are expected to help the business endure “what many expect to be an extended global recession.” Other steps BlockFi has taken to secure profitability include reducing marketing spend, eliminating non-critical vendors, reducing executive compensation, and slowing headcount growth.
BlockFi was founded in 2017 to provide credit services to crypto markets. It now has a range of earning, borrowing, investing, and payment products and supports over 650,000 clients globally. It grew from 150 employees at the end of 2020 to more than 850 today; the layoffs are expected to reduce the team to a little over 600 employees.
BlockFi is not the only crypto company to slash its headcount in response to the recent market downturn. Coinbase took the controversial step to rescind all of its employment offers in early June shortly after emailing already-signed candidates to reassure them that, despite market turmoil, their positions were assured. Other companies in the crypto ecosystem stepped up to hire any Coinbase candidates impacted by the contract termination.
Meanwhile, BlockFi’s announcement came hours after crypto lender Celsius halted fund withdrawals amid “extreme market conditions.” BlockFi has already published a statement assuring that the company has “no exposure to Celsius and… never worked with them as a partner.”
Disclosure: At the time of writing, the author of this piece owned ETH and other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
BlockFi Gets Fiat On-Ramp Serviced by “Crypto Bank” Silver…
BlockFi has announced today it is supporting cash transfers on its platform. BlockFi Ushers in Fiat On-Ramp Weeks after the company’s $30 million Series B funding round led by Valar…
BlockFi Brings in Three Arrows Capital as Investor
BlockFi has announced today that it has brought on Three Arrows Capital as a strategic investor to the company. Client Becomes an Investor Three Arrows Capital, a leading fund manager…
Blockchain.com to Offer 12% Interest on Crypto Deposits, Outpacing Blo…
Investors can now earn up to 12% by depositing their crypto with Blockchain.com, according to a Twitter update from the company: Shocked by our current rates? You won’t believe what…