Even as the cryptocurrency market recovers from a spell of downturn in recent months, the crypto layoffs continue. Crypto bigwigs like Coinbase and Gemini were not spared from financial difficulties arising due to the market losses. Very recently, NFT marketplace OpenSea announced layoff of 20% of its staff citing the downturn. Not just companies, several retail investors withdrew funds from crypto assets in fear of further losses.
CoinFLEX Announces ‘Significant Crypto Layoffs’
In a latest, cryptocurrency exchange CoinFLEX announced its plans to reduce its employee strength. The company said it wants to be a leaner organization to increase chances of successes in business. It said cutting costs would put CoinFLEX in a position cost wise to be able to succeed.
“When we affect the plans around the CoinFLEX Composite distributions, we want to be in a position, cost-wise, to make sure that we have every chance to be a successful business which begins by being a leaner business staffing-wise.”
Job Cuts To Save 60% Costs
This effectively means that the exchange has to cut a big number of employees across all departments and geographies. The decision to effect crypto layoffs would result in saving costs up to 60%, it said. “The staff cuts and non-staff costs that we have made will reduce our cost base by approximately 50-60%. The majority of the team that remain are focused on product and technology, which remains the core of our business.”
In a blog post, the company revealed various updates including the decision to cut jobs. The exchange said it intends to maintain the right size of employee volume. This is keeping in mind any potential acquisition or partnership opportunities, it added. However, the company did not overrule the possibility of new recruitments. We will monitor costs to ensure we operate as efficiently as possible and scale as volumes come back, it explained.
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