Crypto Cuts A Quarter Of Its Staff: Report – Coinphony [FR]

The company will close its offices in Argentina and abandon plans to expand to other countries. Abbreviation is the latest cryptocurrency company to lay off staff due to tough market conditions, according to a report from CoinDesk released Thursday.

The company is cutting 25% of its workforce, or about 150 people, in response to the ongoing crypto winter, CoinDesk reports, citing an email from a company representative.

As part of its survival plan for the coming months, the company will close its offices in Argentina and cancel expansion plans in other countries. According to a report by CoinDesk, 44% of those affected by the cuts live in Argentina, 26% in the US, 16% in the UK, and the rest in other countries around the world. Affected employees will be offered severance pay ranging from 4 to 12 weeks, depending on their location. CoinDesk writes that in addition to staff cuts, executive salaries will also be cut.

According to the report, other measures that is implementing include a slowdown in institutional lending, mergers and acquisitions, and the gaming and NFT business.

Numerous crypto firms have announced plans similar to in response to adverse market conditions, and Coinbase, BlockFi and Gemini have announced their major cuts in recent weeks. However, has been particularly hard hit by the downturn in the market. It was revealed earlier this month that the company had access to Three Arrows Capital before the hedge fund collapsed. Three Arrows defaulted on $270 million in loans from the company as it faced insolvency, although CEO Peter Smith insisted the company was liquid and solvent at the time in a letter to shareholders.

While Coinbase and other crypto exchanges have publicly announced layoffs, has remained silent for now. Crypto Briefing reached out to the firm for comment but had not received a response as of press time.

Disclosure: At the time of this writing, the author of this article owns ETH and several other cryptocurrencies.

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