October 6, 2023 at 12:25 GMTModified date: October 6, 2023 at 12:25 GMT
October 6, 2023 at 12:25 GMT

Ledger slashes 12% of staff for ‘longevity of the business’

Multiple bear markets have forced Ledger to reduce its workforce.

Ledger slashes 12% of staff for ‘longevity of the business’

Cryptocurrency hardware wallet developer Ledger has decided to cut 12% of its workforce. The news was revealed in a Thursday letter that was sent to employees by chief executive officer Pascal Gauthier.

In the light of multiple bear markets, Ledger was forced to make “unwanted, but necessary decisions”. The CEO wrote that a lot of people found refuge in Ledger’s products and services, especially after the collapse of FTX, Voyager, SVB, and numerous others. Their products gave security and secured governance for retail and institutional market security, claimed the company.

However, despite raising significant capital in the first half of 2023, while maintaining the company’s valuation, Gauthier said that they would continue to make decisions for the “longevity of the business” and one of them was the decision to reduce 12% of its workforce.

The CEO cited the reason as the macroeconomic headwinds that limited the company’s ability to generate revenue. The move was in response to the current market conditions and business realities.

He thanked the contributions made by the employees who would be leaving soon, assuring that their work at Ledger would be their “passport to a successful career in this industry”.

Gauthier added: “For the next part of our journey, know this: we will come out of this period stronger, and I’m counting on everyone at Ledger to step up as a leader. We are in an important part of the development of our industry and it’s our duty to act responsibly and seriously to push through these difficult times.”

The letter then went on to talk about the increased usage, revenue and transactional volume that has been seen within Ledger Live. There has also been a wider distribution for its new bluetooth-enabled hardware wallet – Ledger Nanos. It is now available in more stores worldwide, wholesale expansion entering into the UAE, Australia, and Germany, and a substantive e-commerce presence in India.

A subscription service called Ledger Recover is scheduled to be launched soon too. This will enable millions to securely back up their Secret Recovery Phrase. The CEO called this a “necessary service for the next wave of new users to join self custody and Ledger”.

Another product called Ledger Stax is also set to enter the markets. It will enable users to store private keys offline on a Secure Element chip, providing full isolation between the keys and one’s computer/smartphone.

Admitting to having made mistakes in the past, the top executive stated that he sincerely believes that “the positive outweighs the negative” and that the company will come out of this bear market stronger together.

The ongoing market conditions have forced various web3 companies to reduce their headcount. This week also saw blockchain intelligence firm Chainalysis cutting approximately 150 employees in its second round of layoffs due to the same.

A similar path was taken by crypto firms like Binance.US that let go a third of its staff in September. In the same month, venture-backed blockchain firm R3 also axed a fifth of its workforce.