- Crypto service platform lets go of one-third of the workforce.
- The company attributes the cut-off to a need to cut costs.
- Prime Trust joins the growing trend of workforce layoffs in the crypto space.
- Prime Trust withdraws application to receive the license in Texas.
The trend of laying off workers has been prevalent in the crypto and tech space for the past year as the area continues to go through a recession, especially for the crypto industry, which has been plagued with a harsh crypto winter since the second quarter of last year.
Crypto service provider Prime Trust has joined the number of companies laying off staff, as it recently decided to lay off one-third of its workforce.
The layoffs were mainly focused on the crypto company’s communications and compliance departments. While the company did not let on how much of an impact the reductions of stay hit or how many employees, in particular, were relieved of their duties, the move was made to cut costs for the company.
The crypto service provides Prime Trust, popularly known in the crypto space for building crypto and fiat payments, regulatory and custody services for other crypto platforms with the inclusion of Okcoin, Swan, and Abra.
The company chose the path of a layoff amid difficulties that the company has been facing, worsened by the state of the crypto market.
Prime Trust had first announced that they would suspend business operations in Texas after having withdrawn their applications to receive a money transmitter license in the state; this might have been the first sign of hard times for the company.
While representatives of the company refused to comment on why the application had been withdrawn, reports showed that the crypto service company had been fined close to $30,000 by regulators in Texas around 2022 for conducting money transmission services in the state without the proper license.
The company also replaced its former CEO, Tom Pageler, with the now interim CEO, Jor Law, which could indicate turmoil within the company; however, Prime Trust has avoided commenting on the situation.
Prime Trust laying off a percentage of its workforce does not come as a great surprise as it is just joining the trend of companies that have opted to let go of workers to cut costs and stay stable in the market while it goes through a bearish market trend.
Prime Trust is among the lucky few that have been able to get away with just laying off workers and not having to file for bankruptcy due to the effects of the market on crypto companies, which even crypto giants could not evade.
Conclusion
If Prime trust can attain stability and save costs by just laying off one-half of its workforce, as opposed to some other crypto platforms that have had to go through two to three layoffs or cut off a significant percentage of their workforce as a way to stay afloat, it would have a better chance at surviving the current crypto winter.
