On Tuesday (January 8th), Erik Voorhees, the founder, and CEO of direct cryptocurrency conversion platform ShapeShift announced through a blog post that he has had to “let 37 employees go.” This has reduced the company’s size by a third.
He described the process as “a deep and painful reduction, mirrored across many crypto companies in this latest bear market cycle.” Voorhees apologizes to those affected by the major move.
The CEO also revealed in the post that during 2018, the company “got hit from four sides.” He cites legal issues, “people and structural issues,” problems with customers and financial issues as the main contributing factors, stating that the “confluence of these issues combined with our own lack of product focus that resulted in today’s layoff.”
The news comes as a result of the continued cryptocurrency bear market, as well as ShapeShift’s business model, which financially exposes the business to the volatility of the cryptocurrency market.
While this has shown to allow the company to prosper during bull runs, it seems it negatively impacts the firm in periods of downturn.