One of the popular cryptocurrency platforms in Argentina – Lemon Cash – dismissed 38% of its total workforce to endure the current difficult times.
CEO Marcelo Cavazzoli assured the layoffs have no relation to the recent collapse of FTX and thanked his team for their hard work over the years.
The Next Victim
In a recent “open letter to the community,” Cavazzoli announced that Lemon Cash reduced its workforce by around 100 employees, representing 38% of the staff:
“Today, I have sad news to share with you, the one that no entrepreneur wants to give. I decided to reduce the size of our team by 38%.”
While the executive feels “great pain” for taking that decision, this could ensure Lemon Cash’s mission in the long term. The firm has not planned any investments in the next few months and the layoffs seem like the only way to minimize costs during the current adverse macroeconomic reality.
“This is the right decision to make the company sustainable,” Cavazzoli added.
The CEO further outlined that the staff amendments did not come as a result of FTX’s meltdown. However, he disclosed that the distressed trading venue had invested in Lemon Cash in the past, while the latter had a “tiny” exposure to Alameda Research.
The Argentinean entity does not hope to recover that allocation and assured that it has no impact on its over one million customers.
Subsequently, Cavazzoli expressed his gratitude toward his team and vowed to continue the hard work so Lemon Cash could keep its position in the region:
“I will be forever grateful to the team that accompanied us on this mission. I assure you that I will work every day to make it a reality.”
The Dismissal Spree
The crypto winter has triggered a wave of layoffs across the entire industry, and numerous exchanges have already taken such measures.
Gemini – a US-based trading venue spearheaded by billionaire twins Cameron and Tyler Winklevoss – dismissed 10% of its team in June and an additional 7% in July.
One of the giants in the field – Coinbase – laid off 18% this summer. CEO Brian Armstrong argued that the global economy appears to be entering into recession after a decade of economic boom, which is why such changes are essential for the entity’s survival.