CoinTracker lays off 20% of its staff due amid dire economic conditions

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Virtual currency tax and portfolio tracker CoinTracker has announced a new wave of job cuts resulting in the laying off of 19 employees. The tapering of 19 positions translates to a 20% reduction in staff strength.

A statement by the firm blamed the contract terminations on unfavorable conditions caused by the rapidly declining values of virtual currencies and a slump in its user base. CoinTracker’s executives also noted that its principle of increasing hiring rates may have put a significant strain on the financial condition of the firm.

The bulk of the layoffs affected individuals in the customer support department, hinting that CoinTracker will not be adopting an expansionist stance over the next few months. Affected individuals were offered 12 weeks of pay and health care coverage for three months, including the perks of allowing laid-off staff to remain shareholders of the firm.

“Today we are confronted by the crypto winter, an unstable economy with high inflation and rising interest rates, and additional headwinds with crypto tax regulations,” CoinTracker CEO Jon Lerner said. “This is a very different environment than we experienced from mid-2020 to mid-2022. Our expectations for 2023 are different than anticipated in the past year.”

During the throes of mass layoffs back in June 2022, CoinTracker announced plans to increase the size of its workforce, famously claiming that it was “well positioned to continue building a generational company that will last long beyond the next recession (or crypto winter).” CoinTracker’s belief hinged on its $100 million Series A raise that valued the company at $1.3 billion.

“Today is a difficult day, but we continue to believe we have the right foundation and assets to make a foundational product in crypto,” company CEO Lerner said. The firm remained optimistic over the future and expressed resolve to get back on track with its goal of “expanding globally.”

The layoffs are hitting harder

As the year opened, enthusiasts remained optimistic that the waves of layoffs would be a thing of the past, but the spree appears to continue through 2023. The largest U.S.-based virtual currency exchange Coinbase (NASDAQ: COIN), announced further layoffs of its staff by cutting 950 jobs or 20%.

Crypto.com and Huobi have toed a similar path, saying they will also be terminating the contracts of employees in a bid to navigate the murky waters of falling prices. Luno disclosed plans to layoff a staggering 35% of its staff strength, with the firm saying that it “has not been immune to this turbulence” that adversely affected its growth and revenue.

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