There was a time during the 2022-23 bear market crash when companies from the crypto space were laying off their employees en masse, one behind the other. As the conditions improved, companies started standing on their feet and expanding their teams again. However, of late, firms have started treading on the 'strategic restructuring' path again to cut down their expenses.
A few months back, crypto custody software provider Fireblocks fired around 3% of its employees. Crypto marketplace Baktt, which is currently exploring options like a takeover and breakup, also cut down 13% of its staff in Q2 this year. Now, stablecoin issuer Paxos is the latest firm to reduce its headcount.
Reports pointed out that the company has slashed its workforce by ~20%. This decision was communicated to all the 65 impacted team members directly.
In a recent email to employees, Chief Executive Officer Charles Cascarilla reportedly said,
“This is a tough day. I take responsibility for this decision and regret having to take this course. This allows us to best execute on the massive opportunity ahead in tokenization and stablecoin. With more than $500 million on the balance sheet, we are in a very strong financial position to succeed."
The firm has offered affected employees 13 weeks of severance pay, along with three months of subsidized health insurance and outplacement support, and a two-year extension to exercise vested options.
The company has also handed out Q2 bonuses to entitled employees. Additional payments and benefits have also been provided to employees with approved leaves.
Paxos was earlier associated with the minting of Binance’s stablecoin, BUSD. However, owing to regulatory intervention by the New York Department of Financial Services, it washed its hands off the project, which was ultimately wound down by Binance.
The firm continues to issue other coins, with PayPal native stablecoin, PYUSD being one of the feathers in its hat.
