Brazil: Mercado Bitcoin’s parent company cuts workforce for second time in 2022

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2TM, the parent group of Mercado Bitcoin, announced the termination of 15% of its employees following a turbulent fiscal quarter, according to Bitcoin Portal. The layoffs marked the second time this year that the company was reducing a chunk of its workforce to keep its books in order.

In its press release, 2TM cited the dire global financial conditions as the reason for the company layoffs, and expressed regrets over the weighty decision. In June, Mercado Bitcoin’s owner was forced to let go of 12% of its staff, approximately 90 individuals, on the same grounds.

2TM’s statement heaped a portion of the blame on “adversity in the economy” and the absence of a proper legal framework for crypto assets to penalize “companies that ignore local rules.”

“The scenario requires adjustments that go beyond the reduction of operating expenses, making it necessary also to lay off part of our employees,” read 2TM’s statement regarding the June retrenchments. “The process we have carried out has been guided by transparency and respect, to honor the legacy of each employee who has helped us get this far.”

The company statement disclosed that affected staff will be given severance pay and a health plan extension. Such compensation plans are fairly common in an industry blighted by a wave of job cuts since the start of the crypto winter.

According to its website, Mercado holds the title of the largest digital asset exchange in Latin America with over one million users. Mercado Bitcoin capital raises made it Brazil’s first unicorn operating in the virtual assets space, making it the eighth most valuable unicorn on the continent.

Layoffs have been common in the industry since the tragic events in May. The rapid decline of digital assets saw Coinbase (NASDAQ: COIN) capitulate, leading to 20% of staff job losses. Like a pack of cards, Gemini, Kraken, Crypto.com, and other leading exchanges announced similar job cuts.

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