In a recent development in the cryptosphere, the CEO of hardware crypto wallet manufacturer Ledger, Pascal Gauthier, announced that the firm will be laying off 12% of its existing workforce. Gauthier has attributed these layoffs to the firm’s aim to ensure business longevity in the face of a challenging macroeconomic environment. Against the backdrop of a bearish 2022 crypto market, and with the collapse of noted firms such as FTX and Voyager Digital, Ledger’s position has somehow not remained unperturbed.
The announcement came about seven months after Ledger successfully raised upwards of $109 million in a funding round, shooting its valuation to $1.4 billion. Interestingly, the company took its services breadth a notch higher by integrating its Live software with PayPal, thereby giving US residents access to purchase cryptocurrencies through their verified accounts on the payment platform.
However, the present scenario is not an exclusive episode for Ledger, as several other crypto firms are instigating similar staff cut activities due to an uncertain market environment and alterations in the US regulatory terrain. Globally recognized platforms and companies such as Binance.US, Nansen, Coinbase, Huobi and Crypto.com, just to name a few, have all informed about their approaching layoff moves in 2023.
In the case of Ledger, this 12% reduction could imply potential job losses for around 88 employees out of a total of 734. Spearheading rationale from the CEO’s point-of-view signifies that the current macroeconomic winds are capsizing the firm’s revenue generation potential. This has subsequently compelled them to decrease roles across their global operations to withstand this transient phase and ensure a sustainable future.
Despite the short-term hiccup this news might stir, Ledger followers still remember the company’s successful raise of $109 million in a funding round merely seven months ago, positioning Ledger’s valuation at a whopping $1.4 billion. Nonetheless, the dynamics of the crypto industry and broader economic patterns might bring about substantial shakeups in the industry, exemplified by Ledger’s recent decision. This evokes a broader question about the long-term stability and profitability of companies in the extremely volatile crypto market.
Source: Cointelegraph
