By
Bena Ilyas
March 19th, 2024
Genesis conducted the latest staff cut after the company informed clients about “reducing costs and driving efficiencies” amid challenging times for many crypto firms.
With fingers crossed on what the crypto economy is this year, Genesis Global Trading recently dismissed more staff. This came after the company laid off 20% of its workforce in August 2022. When Genesis Global Trading let go of some people last year, it had about 260 employees. At the same time, the company was struggling with major losses connected to the crash of Three Arrows Capital. Also, it was the same time as CEO Michael Moro was exiting his role. Replacing Moro was the Chief Operating Officer Derar Islim, who joined Genesis in 2020. Islim, who was taking over, commented on the staff cut at Genesis and the change in structure. He stated:
“The changes and investments we’re announcing today affirm our commitment to operational excellence as we continue to expand our services to meet the needs of our clients today and into the future.
The downturn started with the failure of the crypto exchange FTX. Genesis said in November that it had $175 million in locked funds in its FTX trading account. Shortly after, it announced that its lending arm would halt its own customer withdrawals.
Genesis Lays off More Staff
Less than a year after the initial staff reduction, Genesis has eliminated another 30% of its employees. Now, the company’s headcount has drastically lessened to about 145, considering the two staff cuts. A spokesperson of the company mentioned two departments that were affected mainly by the decision. They are the sales and the business-development departments. The representative continued:
“As we continue to navigate unprecedented industry changes. Genesis has made the difficult decision to reduce our headcount globally. These measures are part of our ongoing efforts to move our business forward. We sincerely appreciate the hard work of our talented and dedicated team as we continue to work to identify the best outcome for Genesis’s business, clients and employees for the long term.”
Genesis conducted the latest staff cut after the company informed clients about “reducing costs and driving efficiencies” amid challenging times for many crypto firms. The company said in a letter that it needs to “take some additional time” to navigate through a tough financial time.
In other news, Coinspeaker wrote last month about Genesis Global owing over $900 million to Gemini clients. This is because Genesis has been dealing with liquidity issues since FTX’s collapse. Notably, Genesis and Gemini Earn partnered on Gemini Earn, which allows investors to earn 8% interest by lending out their digital assets.
The entire market is at its lows. Mortgage demand dropped 13.2% as 2022 folded, an uncertain 2023 outlook caused treasury yields to decline, and the bearish crypto market remained.