Home News ShapeShift has cut its staff by one third due to crypto winter

ShapeShift has cut its staff by one third due to crypto winter

ShapeShift CEO Erik Voorhees announced a large-scale layoffs in his company with 37 persons leaving the team. Thus, ShapeShift’s staff has shrunk by one third. Voorhees apologized to those dismissed, while telling about the challenges his company had to face in 2018. He, nevertheless, believes that despite all the difficulties, the new year will be more successful.

ShapeShift had to fire 37 people in order to make it through the ongoing crypto winter. The company’s CEO described the situation in his corporate blog:

“It’s a deep and painful reduction, mirrored across many crypto companies in this latest bear market cycle,” – he wrote.

Voorhees apologized to fired professionals and noted that their contribution will remain part of the company’s “fabric”.

According to CEO ShapeShift, he was able to learn an important lesson out of the crisis, that is, one should not disperse company’s resources between numerous spheres and products:

“In truth, what suffered was our core business. The magic of ShapeShift was real and apparent, and yet it wasn’t sufficiently nurtured. I can lay this mistake at nobody’s feet but my own.”

Despite all its successes in 2017, the firm “got hit from four sides” in 2018. Firstly, there were structural issues (“Our understanding of how to organize people grew, but not as fast as the people”); secondly, the company had to face numerous legal issues (“As we stepped into this mire, immense legal bills and risk assessment forced resources to be diverted away from important parts of the company”); thirdly, there were some customer issues (“Business was declining from both aggregate market recession and increased competition”); and lastly, the company suffered considerable financial losses (“Our balance sheet returned to Earth as asset prices were falling”).

“2018 marked a rough year. While this new one starts upon some painful reorganization, we’re encouraged and hopeful for 2019,” – Voorhees concluded.

Recent months saw many blockchain market players downsizing their teams against the background of predominant bearish trends. Blockchain developer ConsenSys has already fired 13% of its staff and is reportedly up for cutting its team by another 50 or 60 percent. Back in October, cryptocurrency exchange Coinbase fired 15 people. Bitmain, the world’s largest cryptocurrency mining equipment manufacturer, envisages a layoff spree as well.