Pascal Gauthier, CEO and chair of hardware crypto wallet manufacturer Ledger, has announced a 12% reduction in staff.
Gauthier explained in an Oct. 5 blog post that the decision was made to ensure the long-term success of the business. He cited the bear market in 2022 and the collapses of firms like FTX and Voyager Digital as contributing factors. According to LinkedIn data, Ledger had approximately 734 employees at the time of publication, suggesting that around 88 individuals may have been affected by the job cuts.
Challenging Market Conditions
The CEO acknowledged that macroeconomic headwinds were impacting revenue generation and necessitated a response to current market conditions. Gauthier stated, “Sadly, this means we are making the difficult decision to reduce 12% of the roles at Ledger.”
Previous Success and Integration
Just seven months ago, Ledger raised over $109 million in funding and achieved a valuation of $1.4 billion. In August, the company integrated its Live software with PayPal, enabling verified U.S. residents to purchase cryptocurrencies through the payment app.
Industry-wide Impact
This announcement from Ledger follows a trend of other crypto firms implementing staff cuts due to market uncertainty and regulatory changes in the United States. Binance.US saw its president and CEO leave amid approximately 100 employee layoffs. Companies like Nansen, Coinbase, Huobi, and Crypto.com have also announced plans for layoffs in 2023.
Hot Take: Ledger Adapts to Market Challenges
As market conditions continue to pose challenges for crypto companies, Ledger has made the tough decision to reduce its workforce by 12%. The CEO cited external factors such as the bear market and collapses of other firms as reasons for the staff cuts. Despite this setback, Ledger had previously experienced success with significant funding and integration with PayPal. The industry-wide impact of staff reductions reflects the current state of uncertainty and regulatory changes in the U.S. crypto market.
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