BitGo layoffs represent 12 percent of the company’s total workforce. BitGo has announced that it is relieving a small portion of its staff to focus on specialized products and services. The renowned crypto custody firm BitGo states that the company is making the transition towards new products and services. Therefore, necessary organizational changes have to be made to further strengthen the business via team reorganization.
Many crypto businesses have also announced layoffs and salary cuts amidst a challenging business environment. Notable examples include CipherTrace and Chainalysis. Downward spiraling cryptocurrency prices and a rout in the markets due to the COVID-19 pandemic has taken a toll on the crypto realm as well. BitGo layoffs will affect the company’s various branches, including sales, operations, and marketing departments.
BitGo layoffs are need of the hour
BitGo aspires to serve institutional clients with streamlined digital asset financial solutions. As the company enters new markets and explores new products and services, appropriate organizational changes are a must. The company claims that relieving 12 percent of the workforce has been a difficult decision. A BitGo representative said that the company much values the contributions of the relived staff.
Lumina, a tax management solutions provider, was recently acquired by the firm. Next, BitGo went for a security token issuance platform called Harbor. These two recent acquisitions by BitGo prove the company is undergoing a visionary change. As the firm tries to go beyond just custody services, the new businesses do require significant team reorganization and hence Bitgo layoffs.
BitGo acquires Lumina! “The acquisition and integration of the crypto-native financial platform’s Portfolio and Tax software is an industry game-changer,” said Mike Belshe, CEO, BitGo. https://t.co/FQSJYjIonz #digitalassets #Institutionalinvestors pic.twitter.com/RGqAGvXyvm
— BitGo (@BitGo) April 16, 2020
Is BitGo planning to offer trading services
The company also went into the lending business in 2020. Last year, BitGo bought Hedge, which provides staking infrastructure. All these developments point towards one direction – BitGo is trying to position itself as a broker to offer trading services to its custody clients. True or not, such a development would make BitGo a competitor to its numerous wallet clients.
BitGo layoffs are widely attributed to the current uncertainty in the business environment fuelled by the Coronavirus pandemic. The COVID-19 has started to take a heavy toll on the crypto industry. First, the pandemic led to a rout in the cryptocurrency prices, and now it is causing large scale layoffs.