New York’s blockchain company, R3, has reduced its workforce by over 20% as a cost-saving measure due to lower-than-expected adoption rates in the financial sector.
Bloomberg reported that while R3 have seen potential with central banks, other projects didn’t perform as expected, affecting their revenue.
Although exact numbers were not provided, anonymous sources indicate that this downsizing will impact multiple departments.
While R3 has gained attention from central banks for digital currency projects, some areas like trade finance and insurance didn’t meet expectations, affecting the company’s revenue.
In May 2017, R3 secured $107 million in funding from over 40 institutions, including major players like Barclays, UBS, and Wells Fargo. At the time, this was one of the largest fundraising events for a blockchain startup.
Recent data from PitchBook shows a 76% decrease in funding for digital asset firms in Q2 2023 compared to the same period last year. As a result, many crypto companies are tightening their budgets.
Over the past year, several companies have laid off staff.
Crypto.com, a crypto exchange, retrenched 50% of its staff, while CoinDesk, a major crypto media outlet, laid off 40% of its editorial team. Binance has also seen several top executives resign from various regions due to regulatory pressures. CoinSwitch, a crypto exchange in India, recently sacked its customer support team.
This trend is not limited to the crypto and blockchain sector.
Google recently announced layoffs in its recruitment division.
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