Cryptocurrency company Blockchain.com is set to lay off 28% of workforce (110 jobs) as the company wants to balance product offerings with demand better, CoinDesk reports, citing a spokesperson.
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The company's representative said that the crypto ecosystem is facing "significant headwinds as its course corrects from the challenges of the last year." To weather the difficulties, Blockchain.com decided to reduce operating costs and headcount, the spokesperson added.
For the London-based company this is the second round of layoffs as Blockchain.com cut around 150 jobs in July 2022 amid the market's turbulence.
According to reports, Blockchain.com was among creditors of the bankrupt hedge fund Three Arrows Capital and could have lost $270 million it had previously loaned to the hedge fund.
The move comes after a US-based cryptocurrency exchange Coinbase also reduced headcount by 18%. Coinbase's boss, Brian Armstrong, said that the company hopes to reduce operating expenses down by 25% in Q1. However, the US-based crypto exchange projects that the layoffs will cost it between $149 million and $163 million.
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