Pascal Gauthier, CEO and chairman of Ledger, a prominent hardware cryptocurrency wallet manufacturer, has made the decision to reduce the company’s workforce by 12%. This strategic move is aimed at ensuring the long-term sustainability of the business, given the challenging market conditions and the impact of recent events on the cryptocurrency industry.
In an official blog post dated October 5, 2023, Gauthier explained the rationale behind the staff reductions. He cited several factors contributing to the decision, including the bear market that characterized much of 2022 and the high-profile collapses of cryptocurrency firms such as FTX and Voyager Digital. These macroeconomic headwinds have created constraints on Ledger’s ability to generate revenue, necessitating a proactive response.
At the time of the announcement, Ledger employed approximately 734 individuals. As a result of the staff cuts, roughly 88 employees may have been affected by the workforce reduction.
Gauthier emphasized the importance of these measures for the company’s continued success and ability to navigate the evolving cryptocurrency landscape. He stated, “Sadly, this means we are making the difficult decision to reduce 12% of the roles at Ledger.”
It is worth noting that Ledger had previously experienced significant success in the fundraising arena. Just seven months prior to this announcement, the company had raised over $109 million in a funding round, resulting in a valuation of $1.4 billion. Additionally, Ledger had made strategic moves to expand its market presence, including the integration of its Live software with PayPal in August. This integration allowed verified United States residents to purchase cryptocurrencies directly through the popular payment app.
Ledger’s decision to reduce its workforce is reflective of broader trends within the cryptocurrency industry. Many companies have faced challenges stemming from the uncertain market environment and shifting regulatory landscape in the United States. In September, Binance.US, a prominent cryptocurrency exchange, announced the departure of its president and CEO, Brian Shroder, alongside significant layoffs affecting approximately 100 employees.
Several other cryptocurrency firms, including Nansen, Coinbase, Huobi, and Crypto.com, have also made public statements regarding their plans for staff reductions in 2023. These moves highlight the industry’s need to adapt and optimize operations in response to changing market dynamics and regulatory pressures.
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