- Hardware wallet manufacturer Ledger is reducing its workforce by 12% due to concerns about the broader economy’s impact on revenue generation.
- Ledger had around 734 workers at the time of publishing, according to data from LinkedIn, suggesting that roughly 88 people may have lost their jobs.
- The platform CEO, Pascal Gauthier, has cited that macroeconomic headwinds” as reasons for the layoffs.
The CEO and Chair of cryptocurrency platform Ledger, Pascal Gauthier, has revealed a significant staff reduction of 12%. This decision by the firm has been attributed to the challenging macroeconomic environment, particularly the impact of the bear market in 2022, as well as the recent struggles faced by cryptocurrency firms like FTX and Voyager Digital.
Ledger is the crypto industry’s leading maker of hardware wallets – physical devices that provide the secure storage of an individual’s private keys, the password needed for them to gain access to the digital assets sitting in their crypto wallet address.
In an October 5 blog post, the CEO emphasized that these measures were essential “for the longevity of the business.” Based on available data from LinkedIn, Ledger had approximately 734 employees at the time of publication. Around 88 individuals might have been affected by the layoffs.
Hard Pill To Swallow
Gauthier has further noted that:
“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.”
Gauthier expressed regret about the situation, acknowledging the difficulty of the decision. He added, ” Sadly, this means we are making the difficult decision to reduce 12% of the roles at Ledger.”
The rough decision comes roughly seven months after Ledger raised over $109M in a funding round, giving the firm a $1.4 billion valuation. Further, in August, the platform integrated its Live Software with Paypal, allowing United States residents with verified accounts on the payment app to buy cryptocurrencies.
The Crypto Winter Wave
Apart from Ledger, various cryptocurrency companies have recently reduced their workforce in response to market uncertainties and shifts in the U.S. regulatory landscape. In September, around 100 employees were let go at Binance. U.S. Leading the exodus was the company’s president and CEO, Brian Shroder, in September, along with over one hundred other workers.
A number of companies have announced layoffs for 2023. Moreover, Chainalysis, a blockchain analytics business, has recently reduced its workforce by 15%. Similar crypto platforms such as firms like Nansen, Coinbase, and Huobi have all announced plans for staff reductions in 2023.
However, Ledger’s recent funding success and strategic partnerships with various platforms, including Papypal, reflect its commitment to growth and innovation in the crypto space. In as much as the platform has faced various shortcomings posed by market volatility and economic uncertainties, staff reductions are seen as a necessary step to adapt to these evolving conditions and ensure the long-term sustainability of the business.
