CoinTracker Laying Off 20% Staffs, Cites Turbulent Market and Over-Hiring
The US-based crypto tax company CoinTracker announces plans to reduce 20% of its employees. The layoff decisions are influenced by the prolonged crypto winter and over-staffing. CoinTracker has confirmed that 19 employees from the support team will be leaving the office.
CoinTracker Cut Offs
An email penned by the crypto firm spokesperson informed the employees the company plans to reduce the 20% workforce. Per the email, CoinTracker is dismissing about 15 to 19 staff.
CoinTracker’s decision will affect the support team, particularly the customer service unit. The spokesperson revealed that the company had considered other expenses before axing the employees.
After this, the crypto firm chief executive Jon Lerner stated on January 26 that the company is ailing from rough crypto winter and an inflationary economic environment. Lerner lamented the impact of the high-interest rate regime and unfavorable crypto tax policies.
He regretted that the current market condition differs from June 2020 to the last mid-year. He remains hopeful that this trading year will be different from others.
Employees Compensation
The axed employees are entitled to a three months pay. CoinTracker assured the dismissed US residents a three months medical insurance.
Additionally, the outgoing employees will remain CoinTracker shareholders and are urged to retain their laptops.
Following this, the chief executive Lerner experienced a challenging day during the departure of the dismissed staff. He reiterated that the crypto firm is established on a solid foundation to launch unique products in the crypto realm.
In January 2022, the crypto firm launched a Series A funding round supported by high-profile crypto firms such as Kraken Ventures, Accel, Coinbase Investment, and other exchanges. CoinTracker reported generating $100M from the funding project, with its total value hovering around $1.3B.
Layoffs in Crypto Industry
CoinTracker cut-offs fueled by over-staffing coincide with Coinbase’s reduction of headcounts last June. The crypto exchange chief executive restated that the firm had over-hired.
At the beginning of this week, DCG-owned Luno slashed 35% of its employees. Also, Coinbase implemented a round two layoff, dismissing 950 employees in early January this year.
Crypto.com followed the Coinbase footprints in the same week, axing reducing 20% employees.
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