•CoinDesk, owned by Digital Currency Group (DCG), is laying off staff to make expenses-to-profit ratio more attractive for potential acquirers.
•This decision will affect almost 45% of the CoinDesk editorial team, or 20 people, representing 16% of its overall workforce.
•The move comes after DCG faced legal troubles with a US-based crypto exchange Gemini and was reportedly nearing an almost $125 million deal to sell a stake in CoinDesk led by investor Matthew Roszak.
CoinDesk Layoffs
Digital Currency Group (DCG) is laying off staff from its publication, CoinDesk, as the company tries to ensure that its expenses-to-profit ratio looks better for potential acquirers. This decision will affect almost 45% of the CoinDesk editorial team, or 20 people, representing 16% of its overall workforce.
Reasons for Layoffs
The move comes after DCG faced legal troubles with a US-based crypto exchange Gemini and was reportedly nearing an almost $125 million deal to sell a stake in CoinDesk led by investor Matthew Roszak. In an internal memo reviewed by TechCrunch , CoinDesk CEO Kevin Worth explained that this decision “was a required step to ensure a financially sound business moving forward and to set us on the path to close the deal to sell CoinDesk Inc”.
Digital Currency Group
Digital Currency Group is a prominent company in the cryptocurrency industry, known for its investments and support of various blockchain and digital currency ventures. However, the company found itself in trouble following the collapse of FTX and most recently with legal troubles with Gemini Exchange.
Request for Comments
Coindesk has not responded to crypto.news’ request for comments at press time.
Conclusion
DCG’s layoff decisions are part of their move towards financial stability ahead of any potential sales while also dealing with other challenges they have faced lately such as legal issues with Gemini Exchange and FTX collapse.