Filecoin Creator Protocol Labs Announces Layoffs Amid Crypto Winter and Economic Downturn

Protocol Labs CEO Juan Benet published a blog station connected Friday announcing that 21% of the company’s unit volition beryllium laid off. Protocol Labs is the creator of the blockchain web Filecoin. Benet emphasized successful the blog station that it has been an “extremely challenging economical downturn, worldwide, and particularly successful the crypto industry.”

Protocol Labs Cuts Jobs successful Response to Macro Winter and Crypto Market Decline

Protocol Labs, the institution down the record retention blockchain web Filecoin, announced connected Feb. 3 that it volition laic disconnected a fig of employees. CEO Juan Benet wrote a blog post, titled “Focusing Our Strategy to Weather Crypto Winter,” to explicate the layoffs. He cited the “extremely challenging economical downturn” arsenic hitting the crypto manufacture peculiarly hard. “The macro wintertime worsened crypto winter, making it much utmost and perchance longer than our manufacture expected,” Benet wrote.

“Although we worked highly hard to debar this, we’ve made the hard determination to trim our workforce by 89 roles (approximately 21%),” the blog station details. “This impacts individuals crossed PLGO teams (PL Corp, PL Member Services, Network Goods, PL Outercore, and PL Starfleet). We’ve had to absorption our headcount against the astir impactful and concern captious efforts.”

Protocol Labs has joined the database of crypto manufacture businesses that person laid disconnected employees during the “crypto winter.” Other cryptocurrency and blockchain-focused companies, specified arsenic Candy Digital, Blockchain.com, Opensea, Huobi, and Gemini, person besides chopped staff. The industry-wide layoffs began to prime up momentum past twelvemonth and person continued into 2023. In his Friday blog post, Benet noted that the “changes volition beryllium pugnacious for each Labbers” and the institution volition big a “PLGO All Hands” gathering connected Monday to reply immoderate remaining questions.

Filecoin’s autochthonal cryptocurrency, FIL, is presently ranked #35 successful the crypto system based connected marketplace capitalization. As of Saturday, Feb. 4, 2023, filecoin’s (FIL) marketplace valuation was astir $2.11 billion, with planetary commercialized measurement of astir $136 cardinal successful the past 24 hours. FIL has gained 65.7% against the U.S. dollar successful the past 30 days and outperformed starring cryptocurrencies similar bitcoin (BTC) and ethereum (ETH). Despite the 65.7% increase, FIL is inactive down much than 97% from its all-time precocious of $236 per coin, which was reached connected April 1, 2021. At 3:30 p.m. Eastern Time connected Feb. 4, 2023, FIL was trading for $5.59 per unit.

What are your thoughts connected the layoffs astatine Protocol Labs and crossed the cryptocurrency industry? Share your thoughts successful the comments below.

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