Amid layoffs, Wyre, a 2013-founded crypto payments company, has informed staff that it is closing down, as reported today by Axios. Two ex-employees have confirmed that Wyre is shutting down and plans to cease operations in January 2023.
The CEO, Ioannis Giannaros, reportedly informed some employees of the closure via email during the holiday season and stated that the company would be liquidated.
The cryptocurrency industry is currently facing challenging times due to the “crypto winter,” which has led to the closure of operations and a halt in hiring at many companies.
It is partly due to many adverse events, such as the collapse of FTX, the Luna Terra crash, and other crypto crises. During this, many companies filed for bankruptcy, and at least one of their founders seems to have fled.
Additionally, rising interest rates by the Federal Reserve, regulatory uncertainty, and investors pulling out of the cryptocurrency market have also contributed to the markets’ struggles.
According to a report by Axios, one of the former employees stated that Wyre has not yet offered a severance package, causing concern among ex-workers that there may not be one.
However, in an email to Axios, Giannaros said that Wyre is still operating but will be reducing its operations as it plans its next steps. He did not yet respond to requests for further comment on the claims made by former employees.
2022 Crypto Winter’s Layoffs
In 2022, there were several reports of mass layoffs at cryptocurrency companies, including Coinbase, which is one of the largest exchanges. In June, it announced that it was laying off around 18% of its workforce, or about 1,100 jobs. Then in November, it laid off another 60 employees.
Crypto.com, another exchange, announced in June that it was laying off 260 employees, representing about 5% of its workforce. However, it has since come to light that the exchange has actually laid off more than 2,000 employees as trading volume has decreased due to the bear market.
According to the report, Celsius laid off 150 employees in July due to financial difficulties. Additionally, on December 4th, the exchange Bybit disclosed that it is reducing its workforce by at least 30% because of the decline in the market. BlockFi also made roughly 600 layoffs, which amounted to a 20% reduction in its personnel.
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