This comes on top of a 20% reduction in August, reducing the total number of employees to 145. The sales and business development departments have been particularly affected. In a statement, Genesis said the layoffs were part of ongoing efforts to move the business forward amid "unprecedented industry challenges."
Genesis Takes Further Measures to Cut Costs amid Challenging Market Conditions
A spokesperson for Genesis confirmed that the company had made more job cuts following a previous round of layoffs in August. The move is part of efforts to "reduce costs and drive efficiencies" in a challenging environment for crypto companies. In a letter to clients on Wednesday, Genesis said it was taking these measures as it navigates the current market climate.
The company has been hit hard by the widespread market collapse caused by the failure of the FTX exchange. In November, Genesis revealed that its derivatives business had $175 million in funds that could not be withdrawn. The firm later announced that its lending arm would also halt customer withdrawals.
Genesis Struggles with Market Collapse and Legal Issues
The recent layoffs at Genesis Global Trading come amid a difficult market environment for the company. Genesis is a subsidiary of Digital Currency Group, the parent company of CoinDesk. The firm has been affected by the market collapse that resulted from the failure of Sam Bankman-Fried's FTX exchange.
In addition to the challenges posed by the market, Genesis has also faced legal issues. The company filed a $1.2 billion claim against failed crypto hedge fund Three Arrows Capital in August. The firm's decision to cut 20% of its workforce at that time was seen as a response to these challenges.
Genesis Continues to Adapt in the Face of Industry Challenges
In a statement, a spokesperson for Genesis Global Trading confirmed the recent layoffs and noted that the measures were part of ongoing efforts to move the business forward amid "unprecedented industry challenges." The company has previously cut its workforce, reducing its headcount by 20% in August. The latest layoffs affect approximately 30% of the workforce, particularly impacting the sales and business development departments. Despite the challenges, Genesis remains committed to finding the best outcome for its business, clients, and employees in the long term. The company has expressed appreciation for its talented team's hard work and dedication as it navigates the current market conditions.