Crypto custody provider Fireblocks has announced its plans to reduce its workforce as part of a restructuring effort.
In a recent interview, Fireblocks said it has been working on restructuring its go-to-market and customer support operations over the past six months.
The goal is to enhance efficiency and streamline services for customers, while also positioning the company for expansion into new geographical markets.
The firm clarified that less than 3% of its teams have been impacted by the restructuring, and those affected will receive severance packages.
“Less than 3% of our teams have been impacted by the restructuring, and all those impacted have been granted severance packages.”
Fireblocks Lays Off 21 Employees
The firm said a total of 21 employees, out of its global workforce of 680 individuals, would be affected by the workforce reduction.
As one of the industry’s most well-funded startups, Fireblocks has raised approximately $1.2 billion from investors including Sequoia Capital and Coatue Management.
In January 2022, the company achieved a valuation of $8 billion following a funding round.
Last year, Fireblocks acquired Australian blockchain startup BlockFold for around $10 million, further bolstering its presence in the market.
Furthermore, the company gained recognition when it provided its technology to BNY Mellon for the custody of Bitcoin and Ethereum on behalf of the bank’s customers.
See Also: Polygon Labs Lays Off 19% Of Staff After ‘Rapid Growth’ During Crypto’s Bull Run
The crypto industry has witnessed a series of layoffs over the past year, with notable companies such as Gemini Trust, Blockchain.com, and Coinbase Global also reducing their staff numbers in 2023.
Despite price rallies in cryptocurrencies and optimism surrounding the potential approval of Bitcoin exchange-traded funds by the US Securities and Exchange Commission in January, the industry experienced a significant drop in crypto job postings of nearly 60% in December.
Tech Layoffs Continue To Hit
The tech industry has faced a significant wave of layoffs in 2024, with companies across various sectors cutting jobs to adjust to changing market conditions and strategic directions.
By February 6, 130 tech companies had laid off 32,576 workers, according to a recent report by Inc.
Notably, these layoffs are not isolated incidents but part of a continuing trend from the previous year, which saw over 262,682 tech workers losing their jobs, significantly higher than the 164,969 layoffs in 2022.
High-profile companies have not been immune to these layoffs, with big names like Snap cutting 10% of its workforce and Drizly, an alcohol delivery app owned by Uber, expected to shut down entirely by the end of March, affecting all 168 employees.
The layoffs span a broad range of sectors within the tech industry, from consumer tech giants like Google, Amazon, and Meta to smaller startups and companies focused on healthcare, retail, and energy.
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