Stablecoin issuer Paxos is reportedly set to cut 20% of its overall workforce. Indeed, a report from The Block revealed the companies’ impending job cuts. Ultimately, around 65 employees will be let go, according to an email from Paxos CEO Chartels Cascarilla.
The decision was made despite a thriving financial situation for the issuer. Specifically, the company revealed it is currently in a “strong financial position,” according to the film’s CEO. He noted that they maintain more than $500 million on the company’s balance sheet.
Also Read: Paxos Secures Approvals for Stablecoin Issuance in Abu Dhabi
Paxos Cutting 65 Jobs Despite Financial Success
Cryptocurrencies have been an undeniably massive part of 2024 so far. The asset class has emerged as a new favorite among institutional investors, with two crypto-based ETFs coming to fruition. Moreover, stablecoins are expected to surge in value over the coming years.
However, that has stopped one firm from instituting some cutbacks. Specifically, Paxos is reportedly set to cut 20% of its staff, according to a new email. The stablecoin issuer will officially cut 65 jobs through the measure. All while the company is seemingly prospering.
Also Read: Paxos To Offer US Dollar-Backed Stablecoin in Singapore
Not only are they in a great financial position, but they are notably expanding. The company has been approved to issue stablecoins in both Singapore and Thailand. Yet, the enacted dismissals are a part of a plan for continued growth, according to the firm’s CEO.
“This allows us to best execute on the massive opportunity ahead in tokenization and stablecoins,” Cascarilla said in an email. Following the cuts, the company still has as many as 300 employees. Furthermore, they were valued at more than $2.4 billion almost 4 years ago.
In the coming years, stablecoins are expected to surge in value. That is a big reason why companies like Ripple have entered the market. Subsequently, Paxos is well positioned to take full advantage of that growth, considering its notable presence internationally.