Layoff storm on the horizon – The bad news follow and partly resemble each other in the cryptosphere. Another crypto business must fire some of his collaborators because of the fall in the markets affecting Bitcoin and cryptocurrencies. And with the price of bitcoin (BTC) rubbing shoulders with $20,000the situation is not likely to improve anytime soon.
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Black days for BlockFi staff
BlockFi CEO, Zac Princeexpressed himself in his tweet of June 13, on the layoffs operated by the company. Indeed, the cryptocurrency lending platform must part with approximately 20% of its staff. She had to take these measures given the significant declines in the crypto markets. Zac Prince even evokes a “dramatic change in macroeconomic conditions”.
Moreover, this context puts other crypto companies in difficulty, such as Coinbase and Gemini. They have also reduced their staff. The time is therefore budget cuts for companies in the sector. In the case of BlockFi, Zac Prince admits that these provisions are intended to ensure the profitability of the society.
And the personnel budget is not the only one to suffer from these restrictions. The company also has reduce marketing spend. In addition, it stopped using the services of non-critical suppliers.
Fall of Bitcoin: a human toll to manage for crypto companies
This recruitment freeze and massive layoffs are damaging the image of the crypto companies concerned. The latter must now face the reviews on social networks, attacking these measures. Companies then try, with or without success, in their own way to reduce this tension.
Coinbase has, for example, created a database for help the victims of his job cancellations. This initiative can help them find another job. But nothing guarantees the effectiveness of such a device.
However, these tremors are not unique to Coinbase. And the CEO of BlockFi is aware of this since he already seems to want to calm things down in his tweets. He apparently insisted on informing the reduction remuneration of the senior executives, including his own. Will this announcement be enough to pass the pill?
Bear markets continue to take their toll on crypto businesses. For the moment, only FTX seems to be the only cryptocurrency exchange there is ready to go against the tide.
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