Cryptocurrency Lending Company Blockfi Reduces Staff Headcount by 20%

Cryptocurrency lending company Blockfi announced that “market conditions” have had a “negative impact” on the company’s business and it will lay off “approximately 20%” of its employees. The letter, written by Blockfi co-founders Zach Prince and Flory Marquez, comes after a large number of well-known cryptocurrency companies cut their staff due to the bear market. Blockfi lays off “nearly 20%” of its workforce. Cryptocurrency values ​​have seen a significant decline these days, and the crypto economy fell below the $1 trillion mark on June 13.

The entire crypto economy has fallen more than 14% in value of the US dollar in the past 24 hours. Cryptocurrency prices have been falling continuously for weeks on end and Monday's market drop was particularly shocking. Leading cryptocurrency Bitcoin (BTC) fell to a low of $22,600 on Monday, and a slew of alternative digital assets saw deeper losses.

Amid the last few weeks of bear market decline in the cryptocurrency economy, cryptocurrency companies have laid off employees. On June 13, Blockfi joined a slew of companies laying off workers, stating that 20% of its employees would be let go. “We have had many tough days at Blockfi in the past, but today may be the toughest,” the Blockfi founders wrote. Like many others in the technology industry, we have been affected by the significant shift in macroeconomic conditions around the world.

We are in a very painful position where we need to reduce our headcount today. “This is not a decision we take lightly and frankly it brings us great sadness.” Prince and Marquez’s letter adds: “We are reducing our headcount by approximately 20% as this reduction will impact every team we have in the company.

However, this decision was driven by market conditions that had a negative impact on our growth rate and a careful review of our strategic priorities. “Blockfi is here for a long time,” the co-founders stress. Recently, Bitso announced layoffs and Buenbit also reduced its headcount. Furthermore, Coinbase also revealed that it had to “rescind a number of accepted proposals,” and Gemini reduced its headcount by 10%.