Paris-based Ledger to Reduce Staff by 12% due to Market Conditions
Paris-based cryptocurrency hardware wallet manufacturer, Ledger, has announced that it will be reducing its staff by 12%. The company cited macroeconomic headwinds and the prolonged bear market as the reasons behind this decision. Earlier in 2023, Ledger raised $109 million in a funding round, reaching a valuation of approximately $1.4 billion.
Reasons for the Job Cuts
The collapse of major players in the industry, such as FTX, Voyager, and Silicon Valley Bank (SVB), led to an influx of customers for Ledger. However, the current market conditions have prevented the hardware wallet manufacturer from generating revenue. As a result, the company has decided to resort to job cuts to sustain its business operations.
CEO Paul Gauthier’s Statement
According to Ledger’s CEO Paul Gauthier, “Macroeconomic headwinds are limiting our ability to generate revenue, and in response to the current market conditions and business realities, we must reduce roles across the global business. Sadly, this means we are making the difficult decision to reduce 12% of the roles at Ledger.”
Industry Trend: Workforce Reduction
Ledger is not alone in trimming down its workforce in response to the prolonged crypto winter. Other companies in the industry that have taken similar actions in 2023 include Dapper Labs, Messari, Crypto.com, Huobi, CoinSwitch, CoinDCX, and most recently Chainalysis.
Hot Take: Market Challenges Continue to Impact Crypto Companies
The challenges faced by Ledger and other crypto companies highlight the ongoing impact of market conditions on the industry. The prolonged bear market and macroeconomic headwinds have made it difficult for these companies to generate revenue. As a result, job cuts have become a necessary measure to sustain business operations. This trend emphasizes the need for resilience and adaptability in the crypto sector as companies navigate through challenging times.
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