Blockchain.com Cuts 25% of Its Workforce Amid Crypto Bear Market

The digital assets trading firm said it will shutter its Argentina-based offices and halt its expansion plans in several countries.

AccessTimeIconJul 21, 2022 at 10:15 a.m. UTC
Updated May 11, 2023 at 6:46 p.m. UTC

Cryptocurrency exchange Blockchain.com is cutting 25% of its workforce, equating to about 150 people, the firm said on Thursday.

  • The company cited the harsh bear market conditions and the need to absorb financial losses. The exchange recently revealed it was dealing with a $270 million shortfall from lending to beleaguered hedge fund Three Arrows Capital.
  • Blockchain.com said it will close its Argentina-based offices and cancel team expansion plans in several countries. Some 44% of the affected employees are in Argentina, 26% in the U.S., 16% in the U.K. and the rest in other countries, the company said.
  • The reduction brings the firm’s staffing back to January levels, a representative told CoinDesk via email.
  • Blockchain.com has expanded rapidly in the past 16 months, growing from 150 employees to more than 600. The firm's fundraising efforts will absorb the financial impact from the collapse of Three Arrows Capital, the Blockchain.com representative said.
  • Other high-profile crypto companies have announced job cuts as the bear market continues to bite the industry.
  • Blockchain.com, which is one of the oldest firms in the crypto industry, is also shrinking its institutional lending business, halting all mergers and acquisitions, placing a pause on efforts to expand gaming and slowing its non-fungible token (NFT) marketplace.
  • The firm said its most active demand was coming from Europe, the U.S. and Africa, as opposed to Latin America. It also said it was receiving more demand from brokerage, rather than gaming.
  • Executive salaries and CEO compensation are also being reduced, the company representative said. Consumer revenue remains active and strong, while institutional revenue is flat and will need time to recover, the representative added.
  • Severance benefits ranging from four weeks to 12 weeks will be offered to those who are laid off, depending on the country, as will job replacement assistance through a third party to U.K. and U.S. employees.

UPDATE (21 July, 10:48 UTC): Adds clarification from the company in fourth, eighth and ninth bullet.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Ian Allison

Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.