Numerous bear markets have compelled Ledger to downsize its workforce
Ledger, the cryptocurrency hardware wallet developer, has opted to reduce its staff by 12%. This announcement was disclosed in a letter sent to employees on Thursday by CEO Pascal Gauthier, highlighting the need for this decision.
Amidst the backdrop of several bear markets, Ledger found itself compelled to make “unwelcome yet essential choices.” The CEO expressed that many individuals sought solace in Ledger’s offerings, particularly following the downturn of FTX, Voyager, SVB, and various other entities. The company asserted that its products provided security and ensured governance for both retail and institutional market participants.
Nonetheless
Despite successfully securing substantial capital in the first half of 2023 and maintaining the company’s valuation, Gauthier emphasized that they would persist in making decisions to ensure the “sustainability of the business.” Among these decisions was the reduction of the workforce by 12%.
The CEO attributed the decision to macroeconomic headwinds that had constrained the company’s revenue generation capabilities. This action was taken in response to the prevailing market conditions and the actualities of the business landscape.
The CEO thanked departing employees and assured them of their bright future. He expressed confidence that Ledger would emerge stronger, emphasized responsibility during industry development, and highlighted the company’s growth in usage, revenue, and distribution of Ledger Nanos.
Ledger is launching Ledger Recover to securely back up Recovery Phrases, and they’re introducing Ledger Stax for offline private key storage. The CEO believes the company will grow stronger despite past mistakes in this bear market.
Continuing market challenges have led several web3 companies to downsize their workforce. This week, blockchain intelligence firm Chainalysis joined this trend, making its second round of layoffs with about 150 employees affected. Other cryptocurrency companies, such as Binance.US, reduced their staff by a third in September, and venture-backed blockchain company R3 also cut a fifth of its workforce during the same month.
