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Uncertainty in the venture capital market is one of the reasons why Lemon Cash has decided to let go off 100 employees.
Harsh market conditions continue to rattle the Latin American crypto industry, leaving crypto firms such as Lemon Cash with the hard choice of cutting down their workforce. This follows after the Argentine crypto exchange recently laid off about 100 employees on Thursday. The layoff, which affected 38% of the exchange’s entire workforce, swept across both its Argentine and Brazilian offices.
Meanwhile, speaking in an interview, Lemon Cash CEO, Marcelo Cavazzoli has given, at least, two reasons behind the decision. Firstly, he mentioned the difficult market conditions that have plagued the Latin American crypto industry. Although, it will be worth noting that Latin America is not the only region experiencing these issues. It is largely a global problem that has continued to persist all throughout the year.
Furthermore, Cavazzoli also noted that the chances of the venture capital market recovering anytime soon do not look encouraging. So, the layoff decision was a hard but necessary one. He said:
“We do not know when the venture capital market will recover, and even less so for a company in a hyper growth stage between a Series A and a Series C.”
Lemon Cash Layoffs: The Biggest So Far in the Crypto Industry in Latin America
It would appear that Lemon Cash has taken layoffs in the Latin American region a notch higher. This is considering the number of employees that it decided to lay off as opposed to the number of jobs that other crypto firms in the region decided to take.
Recall that Buenbit bid goodbye to some 80 employees back in May. Whereas, another top exchange, Bitso, also followed in its footstep, laying off 80 employees of its own in the same month.
Interestingly, however, despite the crypto industry experiencing a massive overhaul globally, layoffs in the sector represent only a tiny fraction of what the overall tech sector has seen in 2022.
According to a CoinGecko report dated November 14, crypto layoffs make up just 4% of the entire tech layoffs. Tech giants such as Meta and Twitter have carried out more job cuts. For instance, Meta laid off 11,000 employees earlier this month. That is, however, more than double that of the total crypto industry layoffs per the report. Whereas, Elon Musk‘s first action after taking over Twitter was also to axe 3,700 employees.
For what it is worth, there is a high chance that the end of these layoffs is not in sight for now. At least, not until there is a full turnaround and macroeconomic clouds clear, hopefully by 2023.