Pascal Gauthier, the CEO and Chair of Ledger, has announced a significant staff reduction of 12%. The decision to cut positions was attributed to the challenging macroeconomic environment, particularly the impact of the bear market in 2022 as well as the recent struggles faced by cryptocurrency firms like FTX and Voyager Digital.
Ledger Addresses Economic Headwinds with Layoffs
In a blog post on October 5, Gauthier emphasized that these measures were essential "for the longevity of the business." Based on available data from LinkedIn, Ledger had approximately 734 employees at the time of the announcement. It suggests that around 88 individuals might have been affected by the layoffs.
Gauthier explained that: "macroeconomic headwinds are limiting our ability to generate revenue." These steps are required to align the company with the current market conditions and business realities. He added: "Sadly, this means we are making the difficult decision to reduce 12% of the roles at Ledger."
This announcement came roughly seven months after Ledger successfully raised more than $109 million in a funding round. It resulted in a valuation of $1.4 billion for the company.
Navigating Challenges in the Cryptocurrency Market
Ledger has been actively expanding its services. Their expanded service includes integrating its Live software with PayPal in August. This integration allowed residents in the United States with verified PayPal accounts to purchase cryptocurrencies conveniently through the payment app.
Ledger's recent funding success and strategic partnerships reflect its commitment to growth and innovation in the cryptocurrency space. Additionally, the company has faced challenges posed by market volatility and economic uncertainties. Staff reductions are seen as a necessary step to adapt to these evolving conditions and ensure the long-term sustainability of the business.
Numerous cryptocurrency companies have recently reduced their workforce in response to market uncertainties and shifts in the U.S. regulatory landscape. In September, around 100 employees were let go at Binance.US, leading to the departure of the company's President and CEO, Brian Shroder. Similarly, firms like Nansen, Coinbase, Huobi, and Crypto.com have all announced plans for staff reductions in 2023.
