As the global cryptocurrency market continues to suffer from volatile market conditions, cryptocurrency exchange Vauld announced on Tuesday that it has made the decision to reduce its headcount by approximately 30 percent.
According to Darshan Bathija, Co-founder and CEO of the Vauld platform, the reduction in workforce affects every team within the organization, “with a bias toward our marketing and talent acquisition teams.”
“The reason for the bias is that we are slacking off on the efforts that are associated with those teams. We are working with each individual who will be negatively impacted to provide them with a severance payment equal to two months of their salaries and to ensure that they will keep their signing and/or joining bonuses “Bathija said in a statement.
In addition, the company is cutting its spending on marketing, reducing its executive compensation by fifty percent, slowing down its hiring efforts, and pausing most of its engagements with outside vendors.
The platform has stated that it will provide the affected individuals and their immediate families with medical insurance for a period of one year and will work closely “with them to find a great place to work.”
“Given the current state of the economy, we came to the conclusion that this was the best way to proceed, even though it was not an easy choice for us to make. Even for companies involved in cryptocurrency trading, the market conditions have become more volatile “Bathija admitted.
The company, which started out in 2018 and is based in Singapore, has raised a total of $27 million so far with the goal of reaching one million users in the United States, followed by Europe, Singapore, and India.
“I’m extremely grateful for your contributions towards helping Vauld serve 800k+ clients and offer world-class services,” said Bathija to the colleagues who will be affected by the company’s decision to part ways with them. “I’m sorry,” she added.
Vauld, which operates more similarly to a cryptocurrency bank for financial products than a cryptocurrency exchange, recognizes cryptocurrency as a fundamental category of assets.
Bybit, a cryptocurrency exchange that is based in Singapore, made the announcement earlier that it would be laying off 2,000 employees, which is approximately 30 percent of its workforce.
Earlier in the month, a number of global cryptocurrency exchanges and companies, such as Coinbase, Gemini, Crypto.com, and others, made the decision to reduce the size of their workforces in response to the ongoing crypto winter.