It is reported that after laying off 30% of its staff, Genesis has 145 employees.
Genesis Global Trading, a cryptocurrency lender established in 2013, has reportedly laid off around 30% of its global staff.
According to the Wall Street Journal report shared on January 5th, the staff was laid off from several departments. It is estimated that Genesis currently has 145 employees. Business development and sales departments were the most affected by the layoffs.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
4 Ways to Turn Fiat to Crypto VS Crypto to Fiat (Easily Explained)
On January 4th, Genesis shared a blog post overviewing 2022 and sharing its plans for 2023.
Genesis stated that its “derivatives and spot trading businesses” work as usual. The company emphasized that it is working on finding the best solution for the “borrowing and lending intermediation business” and its clients.
Nevertheless, Genesis claimed it made “significant progress in refining” its business plans. However, the crypto lender was forced to reduce costs, which may include laying off some of its staff.
The Genesis spokesperson confirmed the news, stating:
As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally. These measures are part of our ongoing efforts to move our business forward.
It is worth noting that it is the second time Genesis has made major employee layoffs. In August, the company cut 20% of its workforce.
The people familiar with the matter claimed that Genesis is working with investment bank Moelis to evaluate the company's current position, including the possibility of filing for Chapter 11 bankruptcy.
It is not the first time rumors about Genesis filing for bankruptcy are floating around. In November, after the company halted its withdrawals and loan applications, the crypto community was buzzing with rumors that Genesis was preparing to file for bankruptcy.
At the end of November, Genesis spokesperson denied the rumors, claiming that the company has “no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing.”