Cake Group’s CEO, Julian Hosp, delivered a sombre message to the team, announcing a significant restructuring to align with the company’s core business, Bake. The decision involves resizing the team to around 125 members, impacting 52 employees.
Reflecting on the past, Hosp acknowledges challenges faced by Cake Group.
Rapid growth led to increased operating costs, and the broader slowdown in the crypto landscape was underestimated. These factors necessitated a painful but essential decision to restructure.
For those affected, today marks the end of their journey with Cake Group. The People Team will provide necessary guidance, including retrenchment benefits and support until the month-end.
Departing members will also receive letters of recommendation and career transition assistance through the Singapore FinTech Association network.
Interestingly, U-zyn, CTO and Co-founder of Cake Group, expressed disagreement with the decision on Twitter. This public dissent adds a layer of complexity to the situation, revealing internal differences in perspective.
Hosp admits that hindsight reveals areas where different decisions could have been made.
However, he expresses gratitude to departing employees, emphasising their value and talent. Looking ahead, Cake Group is optimistic about its position in the digital assets landscape, highlighting a solid runway and positive revenue.
The company unveils Cake 2.0, focusing on Bake while supporting other entities like Ordzaar, DeFiChain Labs, and Levain to become self-sustaining.
A detailed business and product roadmap is expected next month.
Hosp reassures supporters and customers that the decision aims to extend the company’s runway and enhance focus.
There’s a call for resilience and commitment, with a week dedicated to supporting departing team members before regrouping and moving forward.
Staff Impact: 52 staff members are let go, with 123 retained.
Verticals Affected: Resizing impacts all verticals – Bake, Levain, Ordzaar, and Birthday Research – across Singapore and Kuala Lumpur offices.
Future Plans: A detailed business and product roadmap will be shared next month.
Leadership Changes: Discussions on potential changes to organisational leadership are ongoing, with emphasis on transparent communication.