Filecoin Lays Off 21% Of Employees To Resist The Crisis

Key Points:

• Filecoin laid off 21% of its workforce amid a severe crisis.
• The layoffs took place for 89 positions in different departments.
• Protocol Labs has streamlined costs over the past few quarters by reducing budgets, infrastructure spending, and investments.

On February 3, Protocol Labs – the unit behind the decentralized data storage solution Filecoin, announced that the company plans to cut 21% of its workforce in the context of cost control overcoming the recession withdrawal.

Amid the general crisis of the entire crypto market, a wave of layoffs is still sweeping crypto companies worldwide.

“The decision to let go of several valued members of our team is a result of the current market conditions and the macroeconomic challenges we are facing, specifically in relation to filecoin dynamics.(…)FAQs for Departing Labbers.”

According to a document titled

Accordingly, the layoffs took place for 89 positions in different departments, including operations, community services, products, etc. The announcement also did not mention the change of personnel in the Filecoin team.

Protocol Labs CEO Juan Benet wrote in a blog post that high inflation leading to high-interest rates, contributed to a worse “crypto winter, making it more extreme and potentially longer than our industry expected.” He added: “Sometimes we face tough setbacks, but we forge ahead.”

Protocol Labs has also been streamlining costs over the past few quarters by reducing budgets, infrastructure spending, and investments.

Crypto winter, along with the collapse of FTX, regulatory bodies like the US Securities and Exchange Commission and the CFTC are also looking to crypto regulation to control risks.

Not only Filecoin, Coinbase also announced on January 10 that they have laid off 950 employees, or about 20% of the workforce. The layoffs come just months after a significant layoff earlier.

Coinbase CEO Brian Armstrong emphasized in a post that layoffs are necessary to ensure the company is operating efficiently to weather the downturn in the crypto market and seize opportunities if they appear.

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