According to a report in The Wall Street Journal, cryptocurrency lender Genesis Trading has fired thirty percent of its workers as a result of the company’s ongoing financial difficulties and the possibility that it could declare bankruptcy.
Genesis Trading has announced layoffs, which come after the business said in a letter that it had issued to its customers on Wednesday that it would be “cutting expenses and pursuing efficiency” in the face of a hard environment for cryptocurrency companies.
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” said a spokesperson for Genesis.
According to a source who is acquainted with the subject, around 60 jobs were cut at Genesis Trading, bringing the total number of workers at the firm down to approximately 145.
The decline in the market as well as the insolvency of Three Arrows Capital & FTX have had an effect on the firm, which is a component of the crypto conglomerate that is controlled by Barry Silbert and which also comprises Grayscale Bitcoin Trust and the mining company Foundry.
Genesis Trading made the decision to minimize expenses and stated in August that it would be laying off 40 employees, which is equivalent to 20% of its total staff of 260. As a part of this reorganization, the Chief Executive Officer, Michael Moro, made the announcement that he would be shifting into an advisory role rather than continuing in his current capacity as leader.
The cryptocurrency loan business has been heavily impacted by the bear market, which has resulted in a large decrease in the value of several different cryptocurrencies. As a direct consequence of this, a great number of businesses have had trouble keeping their profitability stable as the demand for their services has fallen and the level of competition has grown.
Compiled by Coinbold