Blockchain.com lays off 25% staff

Cryptocurrency exchange Blockchain.com dissolved 25% of its total workforce, approximately 150 employees, along with shutting down its Argentina offices. The company also suspended its future team expansion plans in several countries.

While about 44% of layoffs were based in Argentina, nearly 26% were from the U.S. and 16% were in the U.K., with the remaining located across the globe. The company cited the harsh bear market conditions and the need to absorb financial losses.

The exchange recently revealed it was dealing with a $270 million shortfall from lending to troubled hedge fund Three Arrows Capital. A Blockchain.com representative said that the firm’s fundraising efforts will absorb the financial impact from the collapse of Three Arrows Capital.

Blockchain.com is also shrinking its institutional lending business, halting all mergers and acquisitions, placing a pause on efforts to expand gaming and slowing its non-fungible token (NFT) marketplace.

Severance benefits ranging from four weeks to 12 weeks will be offered to those who are laid off, depending on the country, as will job replacement assistance through a third party to U.K. and U.S. employees. Like Blockchain.com, many cryptocurrency exchanges, including Coinbase Global Inc. and Gemini Trust Co., have recently cut staff following crypto market turmoil.