Blockchain-based platform for open account trade we.trade has cut approximately 50% of its staff due to funding slowdown from several banks and one external investor, GTR has learned.
On June 11, employees at we.trade were informed they were being made redundant "as their roles were unsustainable," GTR says, citing sources familiar with the matter.
The blockchain-based platform has been funded by a pool of financial institutions, including HSBC, Deutsche Bank, CaixaBank, Erste Group, KBC, Nordea, Rabobank, UniCredit, Société Générale, UBS and Santander.
We.trade Head of Commercialization David McLoughlin claims any young business based on flexibility and attention to cost structures.
"As an early-stage company, it is critical that we remain agile and manage our resource needs as effectively as possible – in order to ensure the continued resilience of the company," McLoughlin told GTR.
McLoughlin declined to confirm that the massive layoff could have been caused by the Covid-19 pandemic but pointed out the pandemic in fact "acting as a catalyst for digitization."
Earlier iHodl reported that the Ethereum blockchain-focused software tech company ConsenSys laid off another 14% of its staff.
A ConsenSys representative confirmed that the company had to fire 91 employees due to the impact of the coronavirus pandemic.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.