Cryptocurrency firm BlockFi said on Monday that it would reduce its overall headcount by about 20% as it takes on a strategic review of its priorities amid difficult market conditions.
BlockFi said the job cuts will affect every division of the firm. Impacted team members can opt to include their contact information in a directory of people looking for new roles. An internal BlockFi team will be connecting its former colleagues directly with companies that are hiring.
Zac Prince and Flori Marquez started BlockFi nearly five years ago with an idea of one retail product: crypto-backed loans. Since then, they have expanded their retail product suite to multiple product verticals across Earn, Invest, Borrow, and Pay, supporting over 650,000 clients globally.
BlockFi also launched its institutional business providing financing, trade execution and private client services to leading institutions around the world. BlockFi is now the only independent lender with institutional backing from investors that include Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, SoFi, and Coinbase Ventures.
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At the end of 2020, BlockFi had about 150 employees, and has since grown to over 850 during the incredible rise of the crypto markets and its business. However, since Q1 of 2022, the macroeconomic environment has shifted dramatically, sparking a dramatic pull back in equity and crypto markets. As a result, BlockFi has been eliminating expenses throughout reducing marketing expenses, eliminating non-critical vendors, reducing executive compensation, and slowing headcount growth. Unfortunately, a round of layoffs is the step BlockFi now needs to take to achieve its profitability goal.