Coinbase Ventures Backed Qredo Cuts Workforce By Half
TL;DR:
- Qredo laid off 50% of its workforce this past week.
- Qredo is focusing on its core protocol and web3 custody business in order to weather the crypto winter.
- Qredo's focus on core business and minimizing burn could be a more sustainable strategy than OpenSea's layoffs.
On November 3, 2023, Qredo, a crypto custody infrastructure provider, announced that it was laying off 50% of its workforce. OUCH.
This news comes just months after the company raised $80 million in Series A funding from Coinbase Ventures and other investors.
The layoffs are a sign of the times in the crypto winter, as many companies in the industry are struggling to stay afloat amid declining prices and trading volume. Qredo is not the only company that has been forced to make layoffs in recent months. Other notable examples include OpenSea, Coinbase, and Crypto.com.
Reasons for the Layoffs
There are a few reasons why Qredo may have decided to lay off half of its workforce. First, the crypto winter has had a significant impact on the company's business. Qredo generates revenue from fees charged on transactions and custody services. However, with the decline in crypto prices and trading volume, Qredo's revenue has likely also declined.
Second, Qredo may be trying to reduce its burn rate. Burn rate is a term used to describe the rate at which a company is spending money. In the case of Qredo, its burn rate is likely high due to the high cost of developing and maintaining its crypto custody infrastructure. By laying off employees, Qredo can reduce its burn rate and extend its runway.
Impact on the Crypto Industry
The Qredo layoffs are a sign of the broader challenges facing the crypto industry. The crypto winter has had a significant impact on many companies in the industry, and many have been forced to make layoffs in order to stay afloat.
The layoffs are also a sign that the crypto industry is still in its early stages of development. Many companies in the industry are still unprofitable, and they are vulnerable to changes in market conditions.
Advice for Those Affected by Layoffs
If you have been affected by the Qredo layoffs, there are a few things you can do to improve your chances of finding a new job:
- Update your resume and LinkedIn profile. Make sure your resume and LinkedIn profile are up to date and highlight your skills and experience.
- Network with other professionals in the industry. Attend industry events and connect with people on LinkedIn.
- Reach out to recruiters. There are many recruiters who specialize in placing people in jobs in the crypto industry.
- Be prepared to answer questions about your experience and why you were laid off. Be honest and upfront about your experience and why you were laid off.
Conclusion
The Qredo layoffs are a sign of the challenges facing the crypto industry during the crypto winter. However, the industry is still in its early stages of development and has the potential to grow significantly in the future. If you have been affected by the layoffs, there are a few things you can do to improve your chances of finding a new job.
