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Mercado Bitcoin, one of the largest Brazilian cryptocurrency exchanges, has announced a new wave of layoffs amid a worsening global economic situation for fintech startups, which the exchange says is affecting innovation-based companies. The stock exchange laid off 15% of its workforce on 1 September, this is the second round of layoffs the company has carried out in three months.
Cryptocurrency companies in Latam and around the world are being negatively affected by the recent downturn in crypto and traditional markets. Mercado Bitcoin, a cryptocurrency exchange based in Brazil, has announced the implementation of a series of layoffs due to the global economic conditions.
According to local media, Mercado Bitcoin let go of 15% of its workforce on September 1, as part of a series of measures taken by 2TM, the holding company of the exchange, aimed at streamlining operations.
In a statement, the company also criticized the Brazilian government for sidelining the discussion of a cryptocurrency bill in favor of activities related to the upcoming general election. Mercado Bitcoin stated:
The hardship in the economy continues, and the competitive environment continues to deteriorate and [is] unfair, without the approval of the legal framework for cryptoassets, with players following the laws penalizing companies that ignore local rules.
This is the second time the company has decided to let go of employees of less than three months. The first wave of layoffs was carried out in June when the company fired 90 employees with the aim of maintaining operations in the future. At the time, the company stated that this move was part of a series of “adjustments” that went beyond simply reducing operating expenses.
This time, as during the first wave of layoffs, former employees will receive benefits packages to help them while they search for new jobs, and continued medical insurance.
Other centers in Latam have also fired part of their personnel to reduce expenses. This is the case with Bitso, a Mexico-based exchange, and also Buenbit, an Argentinian exchange, where both have to reduce their workforce to survive the current market downturn.
Mercado Bitcoin secured a $200 million investment from SoftBank in July 2021, reaching unicorn status in one of the largest funding rounds Latam has seen. Later, in December, the exchange announced a second Series B funding round, adding $50 million more in investment.
What do you think of the second wave of layoffs carried out by Mercado Bitcoin? Tell us in the comments section below.
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