Blockchain.com said it would be closing down its Argentina-based offices and canceling team expansion plans in several countries. Some 44% of the impacted employees are in Argentina, 26% in the U.S., 16% in the U.K., and the remaining from the rest of the world, the company said.
The reduction brings the firm’s staffing back to January 2022 levels, a representative told CoinDesk via email.
Blockchain.com has expanded rapidly in the past 16 months, growing from 150 to more than 600 staff. Bolstering its balance sheet by contracting the business means the firm can absorb the financial impact from the collapse of Three Arrows Capital, Blockchain.com representative said.
Blockchain.com, which is one of the oldest firms in the crypto industry, is also shrinking its institutional lending business, halting all M&A, placing a pause on efforts to expand gaming and slowing its non-fungible token (NFT) marketplace.
The firm said its most active demand was coming from Europe, the U.S. and Africa, as opposed to Latin America. It also said it was receiving more demand from brokerage, rather than gaming.
Executive salaries and CEO compensation are also being reduced, the company representative said. Consumer revenue remains active and strong; institutional revenue is flat (but not down) and will need time to recover, he added.
Severance benefits ranging from 4 weeks to 12 weeks will be offered to impacted staff, depending on the country, as well as job replacement assistance through a third party to U.K. and U.S. employees, the firm