On Thursday, cryptocurrency trading company Genesis Global Trading laid off a significant portion of its employees, according to a statement given to CoinDesk. The company is reported to have let go of approximately 30% of its workforce, bringing its employee total down to 145.
As per CoinDesk, Genesis Global Trading has laid off a significant number of employees, according to a spokesperson for the cryptocurrency trading firm. This move follows a letter that was sent to clients on Wednesday, in which the company mentioned that it would be ‘reducing costs and driving efficiencies’ during a difficult time for crypto firms.
Reportedly, the subsidiary of Digital Currency Group (which is also the parent company of CoinDesk), has been affected by the recent market collapse caused by the failure of Sam Bankman-Fried’s FTX exchange. The company also informed its clients that it is currently working on a solution to address the issues at its lending unit and will need more time to implement it.
As per CoinDesk, the company issued a statement saying, “As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally. These measures are part of our ongoing efforts to move our business forward. We sincerely appreciate the hard work of our talented and dedicated team as we continue to work to identify the best outcome for Genesis’ business, clients and employees for the long term.”
In November, Genesis disclosed that its derivatives business had $175 million in funds that were unable to be withdrawn. The company later announced that its lending arm would also be suspending customer withdrawals.
This is not the first time that Genesis has had to make layoffs; the company previously cut 20% of its workforce in August that affected nearly 260 employees. The layoffs were in response to a $1.2 billion claim that was filed against failed crypto hedge fund Three Arrows Capital.