Lemon Cash had to lay off around 100 employees, which consists of 38% of the company’s staff, to survive crypto winter.
The market is witnessing a full-fledged bear market in crypto, and the global macroeconomic situation is forcing the management to rely on extreme measures like lay offs. Lemon Cash, a crypto exchange operating in Brazil and Argentina, announced to lay off 38% of its staff to make the company sustainable without the need for new investments in the coming years.
Marcelo Cavazzoli, the CEO of Lemon Cash, announced the lay off in a Medium post with the title “open letter to the community.” He expressed his pain in the letter and cited the “challenging international context” for the lay off.
“There is an international context of which we are a part and to which we have to adapt. The startup investment market is in a recessive period and we know it will continue like this for a while,” states the CEO.
The CEO mentioned that they have total funding of over $44 million, which will give them the financial backing to survive the long crypto winter. He further wrote that they are not forced to this extreme measure due to the recent FTX collapse. Recently Metaplex, an NFT protocol on Solana, had to lay off several of its employees due to the indirect impact of the FTX contagion.
The Crypto Lay Offs
Lemon Cash is not the only crypto exchange to lay off its workforce. Another Argentine crypto exchange, Buenbit, laid off 50% of its staff, consisting of 80 employees, in May. Coinbase is reported to have laid off around 1000 team members this year. Indian Exchange WazirX laid off 40% of its workforce in Oct.
2022 is witnessing the worst lay offs since Covid. According to a CoinGecko report released on Nov. 14, the crypto sector saw 4,695 lay offs which makes up 4% of the entire tech industry.
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