In a volatile crypto environment, Ledger, one of the leading hardware wallet manufacturers for cryptocurrencies, has announced a significant reduction in its workforce. Pascal Gauthier, the CEO of the French unicorn, confirmed the elimination of 12% of positions on October 5th, emphasizing that this difficult decision was necessary to ensure the company’s sustainability.
Complicated macroeconomic context
Facing a bearish market in 2022 and the collapse of major companies such as FTX and Voyager Digital, Ledger has felt the effects of adverse economic winds. Gauthier stated:
The current macroeconomic situation limits our ability to generate revenue. In response to this challenging context, we are forced to reduce our workforce globally.
The figures suggest that around 88 employees may have been affected by this decision.
Peaks followed by valleys for Ledger
This turnaround comes after a successful period for Ledger. Just seven months ago, the company was able to raise over $109 million, valuing the company at $1.4 billion. Additionally, in August, a collaboration with PayPal was announced, allowing U.S. residents to purchase cryptocurrencies through the Ledger Live application.
Ledger is not the only company in the sector adjusting its course. Many crypto firms, faced with uncertain markets and changing regulations, have gone through workforce reductions. Binance.US saw the departure of its president and CEO, Brian Shroder, as well as the elimination of positions for around a hundred employees. Nansen, Coinbase, Huobi, and Crypto.com have also announced planned layoffs for 2023.