Cryptocurrency brokerage Blockchain.com said it's letting go of 28% of its workforce, or about 110 employees, adding to a dreadful week of bloodletting across the battered cryptocurrency industry.
Thursday’s job losses come after Blockchain.com was forced to cut about 150 staff in July, as the firm grappled with a $270 million hit on loans it made to failed hedge fund Three Arrows Capital.
“The crypto ecosystem is facing significant headwinds as its course corrects from the challenges of the last year,” said a Blockchain.com representative via email. “To better balance product offerings with demand, we’ve made the difficult decision to reduce operating costs and headcount to rightsize the company."
Blockchain’s losses compound a grim week in crypto that saw U.S. exchange Coinbase announce cuts of 20% of its staff, or around 950 jobs, followed by news that Ethereum development firm ConsenSys plans to lay off 100 or more staffers. CoinDesk estimates nearly 27,000 jobs have been lost across the industry since April of last year.
Blockchain.com is now left with a staff of 280, having grown from 160 employees at the start of 2021. All impacted employees are receiving severance packages, the details of which vary by country, the company said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.