Recently Blockchain.com, a Crypto financial service company, announced cutting off its staff by 25%.
The list of companies laying off employees seems to grow each day. Recently big companies like Coinbase and BlockFi also announced cutting off their staff due to inevitable macroeconomic situations.
And now, Blockchain.com has decided to join the bandwagon.
The company announced this week that it would cut its staff by 25%, which means downsizing it to 450 employees.
The executive’s salary and CEO’s compensation would also be cut back. Blockchain has also been forced to shut down its office in Argentina.
According to the Coindesk report, Blockchain.com’s cutback will adjust the firm’s expansion strategies in other areas, such as institutional lending, NFT, and blockchain gaming.
Also, the company would be providing four to twelve weeks of severance pay to laid-off employees. Job assistance would also be provided to US and UK employees, and all this would be taken care of by a third party.
The Domino Effect
The downfall of 3AC has created a domino effect. Blockchain.com was also closely linked to the company.
And, this is not the first one to bear the brunt of The Three Arrow Capital’s downfall. Many companies like Voyager, BlockFi, Coinbase, and Gemini have faced a similar situation.
The effect of crypto winter is taking a toll on the companies, and needless to say, companies laying off their employees is just another blow.
The fall of Terra stablecoin Luna caused a ripple effect and caused companies to take such hard decisions.
It is just a matter of time to see other companies facing the same situation.