Crypto lender Genesis lays off 30% of staff

(Reuters) -Cryptocurrency firm Genesis has cut 30% of its workforce in a second round of layoffs in less than six months, according to a person familiar with the matter, as pressure builds on crypto industry executives to cut costs in the wake of a downturn.

Several firms have suffered from waning investor appetite for crypto after major exchange FTX blew up in September. Earlier on Thursday, crypto-focused bank Silvergate Capital (NYSE:) Corp also said it was slashing headcount by 40%.

“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” a spokesperson for the company confirmed.

The layoffs were first reported by the Wall Street Journal.

New York-based Genesis also laid off 20% of its employees in August. Before the two rounds of layoffs, the company employed around 260 people.

The crypto firm’s lending arm, Genesis Global Capital, froze customer withdrawals in November, citing “unprecedented market dislocation” following the collapse of major crypto exchange FTX.

Higher interest rates and worries of an economic downturn have also piled pressure on the crypto industry, as investors flee risky assets.