To survive the crypto winter, Lemon Cash had to lay off nearly 100 employees, which comprises 38% of the company’s workforce.
The market is witnessing a complete bear market in crypto, and the global macroeconomic situation is forcing management to rely on extreme measures such as layoffs. Lemon Cash, a crypto exchange operating in Brazil and Argentina, announced the laying off of 38% of its workforce in order to make the company sustainable without the need for new investments in the coming years.
Lemon Cash CEO Marcello Cavazzoli announced the layoffs in a Medium post titled “Open letter to the community.” He expressed his pain in the letter and cited the “challenging international context” for the layoffs.
“There is an international context that we are a part of and to which we have to adapt. The startup investment market is in a recession and we know that it will continue to be so for some time,” said the CEO.
The CEO mentioned that they have a total funding of over $44 million, which will provide them with the financial backing to survive the long crypto winter. He further wrote that he is not compelled to take this extreme measure due to the recent collapse of FTX. Recently Metaplex, an NFT protocol on Solana, had to lay off many of its employees due to the indirect effects of the FTX infection.
Lemon Cash is not the only crypto exchange to lay off its employees. Another Argentine crypto exchange, BuneBit, laid off 50% of its workforce in May, including 80 employees. Coinbase has reported laying off around 1000 team members this year. Indian exchange WazirX laid off 40% of its employees in October.
2022 is seeing the worst layoffs since Covid. According to a CoinGecko report released on November 14, the crypto sector saw 4,695 layoffs, which is 4% of the entire tech industry.
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