Bearish Crypto Market Forces UK-Based Tax Consultant Koinly to Downsize Staff by 14%
The prevailing bearish steam has affected the UK-based Koinly in offering tax consultancy services in the challenging market context. The challenging business environment has forced Koinly to downsize its staff by 14%. The crypto tax reporting firm considers the challenging conditions affecting the sector amidst the FTX downfall has become disruptive to its business model.
Explaining the Layoff Decision
Koinly chief executive Robin Singh confessed that the tightening economic conditions compelled the firm to let go of a proportion of its global team. Regretting the experience of letting go of members of the Koinly global team, Singh announced the layoff would affect 16 employees.
Sing revealed that the decision to fire off the 16 employees constituted a strategic response to the worsening bear market. The chief executive confessed that Koinly clientele suffered immense loss following the FTX downfall in November.
Singh described the current bearish market as disruptive to many crypto firms, thereby a reason for Koinly to pursue a lean structure. The chief executive indicated that change is inevitable for Koinly to survive the crypto winter that is set to become colder. Nevertheless, Singh admitted the headcount reduction was a tough decision in losing colleagues who helped deliver Koinly’s success.
Mass Layoff Trend
Koinly’s decision to reduce headcount joins an increasing list of crypto firms that have recently declared firing a percentage of their staff. Singh acknowledged that Swyftx reduced their staff by 35% while Bybit announced 30% job cuts. The layoff decision portrays a contrasting view for a company whose headcount grew by 225% at the onset of the year 2022, driven by record operations growth.
Singh demonstrated Koinly input in crypto tax reporting as invaluable since the company started in 2018. As such, the firm has become the tax partner for blockchain entities, crypto exchanges, and investors. In particular, Koinly helps investors track crypto transactions and ascertain the capital gains and associated costs.
Remote Working Forces Office Closure
Although unrelated, the layoff coincided with Koinly announcing the closing of the London office by April 2023. Confirming the closure, Singh attributed the closure to the recent discovery that the globally distributed teams can work remotely. In contrast, Koinly will retain the Sydney office as the staff prefers the office environment.
The executive noted that fewer of Koinly’s clients are reporting crypto-related tax returns, given the losses incurred in the bear market. Nevertheless, Singh informed users to always file their tax returns since losses will offset gains realized in the future.
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