BlockFi reduces staff by 20% due to dramatic economic conditions

BlockFi co-founder Zac Prince has regretfully stated that the crypto lending company will reduce staff by 20% due to dramatic economic conditions worldwide. 

BlockFi and Zac Prince’s regretful message about 20% staff cut

Yesterday, BlockFi co-founder Zac Prince described the difficult economic situation the crypto lending company is going through, resulting in the decision to cut staff by 20%. 

This morning we announced that after taking significant time to plan and consider, we are reducing our headcount by roughly 20%. This is not a decision we take lightly and is one that brings us great sadness.

— Zac Prince (@BlockFiZac) June 13, 2022

“This morning we announced that after taking significant time to plan and consider, we are reducing our headcount by roughly 20%. This is not a decision we take lightly and is one that brings us great sadness”.

The company, which had around 250 employees as of 2020, seems to have grown enormously along with the crypto market, reaching up to 850 employees today. 

However, since the first quarter of 2022, the macroeconomic environment has changed so much that the crypto market itself has been in steep decline, leading BlockFi to cut marketing expenses, eliminate non-critical suppliers, and reduce executive compensation. 

Today alone, the situation is so difficult that the company finds itself having to lay off 20% of its staff. 

BlockFi wants to ensure its long-term presence

Continuing with his harrowing speech, Prince conveys optimism when describing BlockFi‘s situation with its 600 employees remaining. 

“For our remaining 600+ colleagues and our clients, partners and stakeholders who have supported us worldwide – we are steadfast in our commitment to ensure BlockFi is here for the long haul. Clients should not experience any material disruption to our platform, products or services; you will receive the same great service you have come to expect from BlockFi”.

Not only that, to support that portion of “bright minds” who will have to stay at home, BlockFi’s People team will connect former colleagues directly with the companies they are hiring.

Currently, despite the market downturn, BlockFi offers services to earn, invest, borrow and pay with cryptocurrency, supporting over 650,000 customers globally. Last year, when the crypto market was in the midst of its explosion, co-founder Flori Marquez said BlockFi would reach one million customers by the end of 2021. 

Bitcoin and the lowest Sunday close since December 2020

And indeed, BlockFi’s choice follows the trend of the crypto market, led by Bitcoin (BTC), which this past Sunday seems to have recorded its lowest daily close since 27 December 2020. 

On Sunday alone, BTC’s daily close in the red was $1,755. And since that day, it seems that the price has not recovered, quite the contrary!

In the last 24 hours, Bitcoin has fallen 11.50%, touching the price of $22,550 at the time of writing. A drop of 23% when looking at the last 7 days. 

Ethereum (ETH) also follows closely, dropping 8% in the last 24 hours and 30% in the last week. At the time of writing, ETH is worth $1226.