Ledger, a prominent manufacturer of hardware wallets and creators of the famous Nano S wallet, announced a downsizing of its workforce. CEO and Chairman Pascal Gauthier confirmed the layoffs, which account for 12% of the company’s staff, on October 5, 2023. While Ledger remains a profitable entity, Gauthier attributed the decision to “macroeconomic headwinds” that have made it increasingly challenging to sustain profitability.
“Macroeconomic headwinds are limiting our ability to generate revenue, and in response to the current market conditions and business realities, we must reduce roles across the global business,” the company’s CEO stated.
The cryptocurrency industry, known for its volatility, has recently encountered a barrage of challenges. Factors like rising interest rates, heightened regulatory scrutiny, and a decline in trading volumes and funding have created a turbulent environment for crypto-related businesses. Ledger is not alone in feeling the impact, as other firms have also been compelled to implement workforce reductions.
Approximately 88 Employees Affected at Ledger
Gauthier stressed that these layoffs are an essential step to securing the company’s long-term success. In response to the changing landscape, the wallet provider will refocus its efforts on core products and services while investing in emerging technologies like Web3 and the metaverse.
At the time of this reporting, Ledger has 734 employees, as seen on LinkedIn. This decrease means that about 88 employees may be affected by the layoffs, which are painful but necessary actions to adjust to changing market circumstances.
In a letter to Ledger employees, Pascal Gauthier acknowledged the challenges posed by bear markets and expressed gratitude for their dedication to the company. He emphasized Ledger’s commitment to providing uncompromising security and user-friendly solutions to the ever-expanding digital asset ecosystem. Gauthier encouraged his team to embrace pragmatism and audacity as they navigate these difficult times while remaining optimistic about the future.
Meanwhile, this development comes only seven months after Ledger’s successful $109 million fundraising round, which valued the company at $1.4 billion. In August, Ledger expanded its reach by enabling cryptocurrency purchases for verified PayPal users in the United States, following the integration of its Live software with PayPal.
Navigating the Stormy Crypto Seas
The move by Ledger to decrease its employees is part of a wider trend in the digital currency industry. Several well-known cryptocurrency companies have recently announced significant layoffs in response to the market’s rising volatility and regulatory uncertainties.
For instance, Brian Shroder, the president and CEO of Binance.US, left the company in September along with more than a hundred other staff members. Chainalysis, a leading blockchain analytics firm, also recently reduced its workforce by 15%.