Mercado Bitcoin, one of Brazil’s largest cryptocurrency exchanges, has announced a new wave of layoffs amid a worsening global economic situation for fintech startups, which the exchange says is affecting cloud-based companies. innovation. The exchange laid off 15% of its workforce on September 1, the second round of layoffs the company has executed in three months.
Brazilian exchange Mercado Bitcoin announces new wave of layoffs
Cryptocurrency companies in Latam and around the world are negatively affected by the recent downturn in the crypto and traditional markets. Mercado Bitcoin, a Brazil-based cryptocurrency exchange, has announced the execution of a series of layoffs due to global economic conditions.
According local mediaMercado Bitcoin let go 15% of its workforce on September 1, as part of a series of measures taken by 2TM, the exchange’s holding company, aimed at streamlining operations.
In a statement, the company also criticized the Brazilian government for sidelining discussion of a cryptocurrency bill in favor of activities relating to the upcoming general election. Mercado Bitcoin said:
Economic adversity persists and the competitive environment continues to deteriorate and [is] unfair, without the approval of the legal framework of crypto-assets, with actors who respect the laws penalized against companies who ignore local rules.
Lots of layoffs
This is the second time that the company has decided to lay off employees in less than three months. The first wave of layoffs was executed in June when the company laid off 90 employees in a bid to maintain operations in the future. At the time, the company said the move was part of a series of “adjustments” that went beyond simply reducing their operating expenses.
This time, as well as during the first wave of layoffs, former employees will receive benefits to help them find new jobs and continued medical insurance.
Other Latin American stock exchanges have also laid off some of their staff to cut expenses. This is the case of Bitso, an exchange based in Mexico, and also Buenbit, an Argentinian exchange, both of which have to reduce their staff to survive the current market downturn.
Mercado Bitcoin completed a $200 million investment from SoftBank in July 2021, achieving unicorn status in one of the largest funding rounds Latam has seen. Later, in December, the exchange announced the closing of a second Series B funding round, adding another $50 million in investments.
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