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Cryptographic exchange ShapeShift has announced a series of layoffs, citing a series of difficulties including a difficult market climate.
In a post published on Tuesday, CEO Erik Voorhees wrote that the startup had fired 37 employees or a third of his staff. He described the process as "a deep and painful reduction, which is reflected in many cryptic companies in this latest bear market cycle."
As noted by Voorhees, ShapeShift is not the only encrypted startup to switch to cutting its workforce in recent weeks. As previously reported by CoinDesk, the ethereum production studio ConsenSys announced a 13% reduction in personnel at the beginning of December. More recently, the chat startup state and bitmain mining giant Bitmain have confirmed that they were cutting staff members.
In one of the most transparent testimonies of its kind to date, Voorhees has described several problems that have worked against Shapeshift in this decision. In addition to the growing legal concerns that have hindered the entire sector, Voorhees claimed that the company had grown too fast and had spent its efforts in too many product areas (such as CoinCap, it is the competitor of CoinMarketCap and KeepKey, an acquisition).
Furthermore, the company's decision to start making customer checks on customers has caused a great loss of customers and users. Finally, transactions, in general, have fallen across the board, leading to a general decline in revenue, wrote Voorhees.
Although Voorhees said that the company covered these risks, it was not enough to allow the company to remain at the current level of staff.
"2018 has been a difficult year, and while this new start on a painful reorganization, we are encouraged and confident for 2019," he wrote.
ShapeShift declined to comment further when reached.
Image of credit: Piotr Swat / Shapeshift
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