Protocol Labs Announces 21% Headcount Reduction, Cites Rough Crypto Winter
Filecoin developers Protocol Labs plans to let go 21% of the staff due to the ongoing crypto winter and harsh economic conditions. The firm’s chief executive officer Juan Benet proclaimed on February 3 that the current market condition compels the firm to reduce its operating cost. Benet confirmed that the tech company would be letting go of 89 employees. Also, the firm intends to minimize the budget and expenditures incurred in infrastructure development and investment.
Protocol Labs Axing the Workforce
As per the report issued by Protocol Labs’ chief executive Juan Benet on February 3, the firm joins other crypto companies in downsizing the workforce to survive the turbulent market. Benet lamented that the spiking inflation rates had plunged most companies to yield a low return on investment. He restated that the current market condition and regulators’ appetite to increase the interest rates have limited the expansion of Protocol Labs.
Beyond this, Benet confirmed the bumpy crypto winter continues to affect the operation of most businesses in the digital realm.
Benet pointed out that to sustain operations, the firm was forced to slash 21% of Protocol Labs’ core teams, including the member services, Starfleet, and Outercore staff.
Protocol Labs Reveals Future Plans
Meanwhile, Benet requested the dismissed employees to attend a meeting with the Protocol Labs management to debate the way forward. He inspired the management to continue supporting the axed employees by seeking employment opportunities within and outside the company.
The management will also assist the affected employees in revamping their resumes to fit the current job market. Benet acknowledged the efforts made by the departing team toward the growth of Protocol Labs.
He reaffirmed that with the tech company mantra “push humanity forward” and a dedicated team, the firm made tremendous achievements, such as developing Filecoin, Bacalhau, and SpaceNet.
Strategies for Reducing Costs
Besides the downsizing, the giant tech firm announced purposeful moves to reduce expenses. Benet’s report revealed that the company has been operating on a lower budget since last October.
At the moment, the tech firm will cut the team spending and minimize the cost related to infrastructure development.
He reiterated that Protocol Labs would pursue other funding options, such as grant programs to support staying operational.
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