The crypto lending platform BlockFi has decided to cut off 20% of its staff due to extremely tough market conditions. The current market situation has been really tough not only for investors but also for institutions.
Large firms like Crypto.com have recently announced that they would be laying off 5% of their employees. It was also followed by Coinbase and Gemini, who took the same decision to cut down on their staff members. The decision follows the market downturn and the decreased business and profitability in the bear market.
BlockFi hops on the bandwagon
The founders of BlockFi also released a blog post to address the decision. The blog said that the team has been going through some tough days and today is probably the toughest day for them because of the decision.
The team wrote that the shift in economic conditions had affected them badly, which is luring them to proceed with the decision.
“We are reducing our headcount by roughly 20% and the reduction impacts every team at the company. This decision was driven by market conditions that have had a negative impact on our growth rate and a rigorous review of our strategic priorities.”
The team addressed in the blog post that the affected employees are treated with the utmost compassion.
“BlockFi’s greatest strength has always been our team, and we have immense gratitude for all who have joined us for this journey. At the end of 2020, we had about 150 employees and since then grew to over 850 during the incredible growth of the crypto markets and our business. “
The company addressed that since Q1 of 2022, the market conditions have been unfavorable, causing a dramatic fall for equity and crypto markets. The platform stated that they have been trying to cut the losses by reducing the marketing expenditure, reducing executive compensation, and slowing headcount growth. The team also wrote that it was a very hard decision and a tough day.