BlockFi to lay off a fifth of its workforce

The crypto-lending platform BlockFi announced layoffs of more than 850 employees, roughly 20% of its workforce.

Our ambition and commitment remains the same: to provide crypto-powered financial services that accelerate prosperity worldwide. We know this is a hard day for many, but BlockFi will persevere. https://t.co/f15JcNbzuy

— Zac Prince (@BlockFiZac) June 13, 2022

Founders Zac Prince and Flori Marquez noted that from the first quarter of 2022 the macroeconomic environment had changed sharply, with a downturn in stock and cryptocurrency markets. To preserve profitability, BlockFi undertook a series of measures, including:

• cutting marketing spend;
• eliminating non-critical suppliers;
• reducing executive compensation;
• slowing headcount growth.

“We are reducing headcount by about 20%, which affects every team in the company. This decision is driven by market conditions that have slowed our growth, as well as a thorough review of our strategic priorities,” said the BlockFi founders.

They assured that clients would not experience “any material disruptions to the platform, products or services.”

“For our remaining more than 600 colleagues, clients, partners and stakeholders who have supported us around the world, we are firmly committed to ensuring that BlockFi remains here for the long term,” stressed Prince and Marquez.

Meanwhile, according to Reuters, the company hired a five‑person lobbying team from Arnold & Porter.

In February BlockFi settled the dispute with the U.S. Securities and Exchange Commission and state regulators, agreeing to pay $100 million in fines.

Earlier in June, reports said the company was set to close a new funding round at a $1 billion valuation, instead of the previously planned $5 billion.