• Blockchain and Web3 firm Protocol Labs has let go of 89 people, which amounts to one fifth of its staff count.
• The decision comes from current market conditions and the macroeconomic challenges in relation to Filecoin dynamics.
• Executives from Protocol Labs say they are providing departing employees with pay, healthcare benefits, immigration support, and job placement support.
Protocol Labs Reduces Staff
Protocol Labs – an early pioneer of blockchain and web3 technology – has let go of more than 89 people, which amounts to roughly one-fifth of its present staff count. The decision was made due to current market conditions and the overall bearish sentiment of the digital currency industry. At this stage, more than 26,000 people employed in the crypto space have lost their jobs.
Funding Despite Letting Go
Not long ago, the company earned more than $257 million in new funding. This surge in financial revenue came through an initial coin offering (ICO), where $52 million was derived from pre-sales to major financial institutions like Union Square Ventures and Sequoia Capital. However, despite having received substantial funds recently, executives at Protocol Labs claim that it’s not able to keep all its current employees onboard due to market conditions related to Filecoin dynamics.
Executives at Protocol Labs also state that they are not just shoving unwanted employees out the door; departing employees will continue to receive pay long after their final days with the firm as well as COBRA-related healthcare benefits, immigration support, and job placement support. This is similar to what other crypto-centered companies have done over the past few months such as Huobi Global Coinbase, Gemini who have had to release several people from employment due to dipping crypto market sentiment.
The money earned by Protocol Labs is going towards building out a network of personal computers that share unused computing power in exchange for Filecoin currency. It is yet unclear how much money will be allocated for employee wages versus other aspects of development for this project but it appears that some portion will be used for paying existing staff members before letting them go or providing additional economic support afterwards when necessary .
Protocol Lab’s recent move brings into question whether or not large enterprises are truly taking care of their employees during uncertain times or if cost cutting measures take precedence over human resources departments even though there is enough capital available from investors to do both simultaneously . Either way , it’s a difficult situation for those affected but hopefully with sufficient provisions provided by Protocol Labs , these individuals can make a successful transition into new roles quickly .