The company announced the layoffs a day earlier, stating that it would be “reducing costs and driving efficiencies” amid a challenging crypto industry.
In a statement shown on Coindesk’s article, a spokesperson for Genesis Global Trading confirmed that the cryptocurrency trading company laid off additional employees on Thursday.
According to a person with knowledge of the situation, Genesis reduced its workforce from 145 employees to approximately 30%. In August, Genesis eliminated 20% of its 260 employees.
The individual added that the departments of sales and business development have been particularly affected.
A Genesis spokesperson stated in a statement, “As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our global headcount.” Our ongoing efforts to advance our business include these measures. As we continue to work toward determining the long-term optimal outcome for Genesis’s business, clients, and employees, we sincerely appreciate the talent and dedication of our team.”
The company announced in a letter to its customers on Wednesday that it would be “reducing costs and driving efficiencies” in the face of a difficult environment for crypto firms, prompting the layoffs.
The widespread market collapse brought on by the failure of Sam Bankman-Fried’s FTX exchange has been detrimental to Genesis, a subsidiary of the crypto conglomerate Digital Currency Group, which is also a parent company of CoinDesk. Genesis disclosed in November that the derivatives division’s funds totaling $175 million could not be withdrawn. Later, the company said that its lending arm would stop taking money from customers.
The company filed a claim for $1.2 billion against the failed crypto hedge fund Three Arrows Capital, which led to the layoffs that took place in August.