Ledger, the Paris-based cryptocurrency wallet maker, is cutting its headcount by 12%, citing macroeconomic headwinds and a prolonged bear market as reasons for its decision.
The French company raised $109 million earlier in 2023 in a funding round to reach a valuation of about $1.4 billion.
- Ledger Chairman and CEO Paul Gauthier announced the news in a letter sent to employees, which was posted on the company’s website. Blog On Thursday, October 5, 2023.
- According to Gauthier, Ledger has seen an influx of clients following the collapse of major players in the industry, including FTX, Voyager, and Silicon Valley Bank (SVB).
- The company also raised $109 million in a Series C fundraising round in March 2023, raising Ledger’s valuation to about $1.4 billion.
- However, current market conditions have hampered the hardware wallet manufacturer from generating revenue, prompting the company to resort to job cuts to maintain business operations.
- According to Gautier’s letter:
“Macroeconomic headwinds are limiting our ability to generate revenue, and in response to current market conditions and business realities, we must reduce roles across the global business. Unfortunately, this means we are making the difficult decision to reduce 12% of roles at Ledger.
- Ledger, which launched a cryptocurrency trading network technology in June called Tradelink for institutional clients, faced criticism from its online users in May after releasing a controversial update that raised security concerns.
- Meanwhile, Ledger has become the latest cryptocurrency company to trim its workforce amid a long crypto winter. Blockchain analytics company Chainalysis recently implemented a second round of layoffs after laying off nearly 5% of its workforce in February.
- Other companies in the industry that have taken similar actions in 2023 include Dapper Labs, Messari, Crypto.com, Huobi, and more recently CoinSwitch and CoinDCX.
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