Paxos is reported to be reducing its workforce by 20%: details

Stablecoin issuer Paxos has laid off 20% of its workforce, reducing its headcount by 65 people, Bloomberg reported Thursday, citing an internal email.

According to the report, Paxos CEO and co-founder Charles Cascarilla said the downsizing would allow the company to take advantage of future opportunities in the tokenization and stablecoin sectors. Paxos intends to phase out some of its services to focus on tokenization and stablecoins.

Paxos lays off 65 employees

The stablecoin issuer offered those affected three months of subsidized health insurance and replacement support, 13 weeks of severance pay and a two-year extension to exercise vested options. In addition to the severance offer, employees on a quarterly incentive program will receive second quarter bonuses, while those on approved parental or medical leave will receive certain payments and benefits.

Due to the job cuts, Paxos’ workforce now ranges between 200 and 300.

Interestingly, Cascarilla said Paxos is in a strong financial position, with more than $500 million on its balance sheet. This raises the question of why the company’s workforce was downsized.

“This is a hard day. I take responsibility for this decision and regret having to take this course… We communicated this news directly to the 65 affected team members. This allows us to better execute on the massive opportunity we have for tokenization and stablecoins. With more than $500 million on the balance sheet, we are in a very strong financial position to succeed,” Cascarilla stated.

Paxos presents a stable coin with performance

The Paxos layoffs come a week after crypto payments infrastructure firm MoonPay let go 10% of its workforce due to overinvestments that led to lower-than-expected operating margins and a cost structure elevated The company said the role cuts and relocations would improve its cost structure and strengthen its fundamentals.

Like Paxos, MoonPay said it is in a strong financial position with positive cash flow and years of runway ahead of it. Affected employees will also receive severance packages and will continue to have the opportunity to be MoonPay shareholders.

Meanwhile, the UAE arm of Paxos recently launched a new stablecoin with returns, the Lift Dollar (USDL). USDL is designed to pay the yield generated from your holdings to eligible wallet addresses on a daily basis.

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