BlockFi to lay off some staff
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Cryptocurrency platform BlockFi has reported a reduction in its workforce of more than 850 employees by around 20 per cent.
Founders Zack Prince and Flory Marquez noted that since the first quarter of 2022, the macroeconomic environment has changed dramatically and there has been a downturn in all equity and cryptocurrency markets. Therefore, to maintain profitability, BlockFi has taken several forced measures, including:
We are reducing headcounts by about 20%, which affects every team in the company. This decision is driven by market conditions that have had a negative impact on our growth rate, as well as a thorough review of our strategic priorities, said the founders of BlockFi.
They assured that the company's customers will not experience any significant disruption to the platform, products or services.
For our remaining 600 colleagues, customers, partners, and stakeholders who have supported us around the world, we are determined to ensure that BlockFi is here to stay for the long term, Prince and Marquez stressed
In doing so, according to Reuters, the company has hired a team of five lobbyists from the firm Arnold & Porter.
Recall that in February this year, BlockFi managed to settle with the US Securities and Exchange Commission and state-level regulators by paying $100m in fines.