Mercado Bitcoin, one of Brazil’s largest cryptocurrency exchanges, has announced another wave of layoffs amid a deteriorating global economic situation for fintech startups, which the exchange says is affecting companies focused on innovation. The exchange laid off 15% of its staff on Sept. 1, the company’s second round of layoffs in three months.
Brazilian Mercado Bitcoin Exchange Announces New Wave of Layoffs
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Cryptocurrency businesses in Latam and around the world are being negatively impacted by the recent downturn in the crypto and traditional markets. Mercado Bitcoin, a Brazil-based cryptocurrency exchange, has announced the implementation of a series of reboots due to global economic conditions.
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According to local media, Mercado Bitcoin laid off 15% of its workforce on Sept. 1, as part of a series of measures taken by 2TM, the exchange’s holding company, in an effort to streamline operations.
In a statement, the company also criticized the Brazilian government for sidelining discussion of a cryptocurrency law in favor of activities related to the upcoming general election. Mercado Bitcoin said:
Economic hardship continues and the competitive environment continues to deteriorate and [is] dishonest, without the approval of the crypto asset legal framework, with actors respecting criminal law laws against companies ignoring local rules.
This is the second time the company has decided to lay off employees in less than three months. The first wave of layoffs occurred in June, when the company laid off 90 employees but to continue operations in the future. At the time, the company said the move was part of a series of “adjustments” that went beyond just cutting their operating costs.
This time, as during the first wave of layoffs, former employees lost benefits to help them find new jobs and ongoing health insurance.
Other Latin American exchanges have also laid off some of their staff to cut costs. This is the case for Bitso, an exchange in Mexico, and also for Buenbit, an Argentine exchange, both of which have had to downsize their staff to survive the current downturn in the market.
Mercado Bitcoin completed a $200 million investment from SoftBank in July 2021, earning unicorn status in one of the largest funding rounds Latam has seen. Later, in December, the exchange announced the closing of a second Series B financing round, adding another $50 million in investment.
What do you think of the second wave of layoffs carried out by Mercado Bitcoin? Tell us in the comments below.
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