Genesis Lays Off 30% of Staff, Seeks $1B Loan Amid Crypto Downturn
Crypto brokerage Genesis has undergone significant changes in recent months. On Thursday, it laid off around 30% of its workforce, following a similar round of cuts in August. The company has also seen a high turnover of senior executives and is considering a $1 billion loan to navigate financial difficulties.
Thursday's layoffs at Genesis affected approximately 60 employees, leaving the company with 145 staff. This follows an earlier reduction of 20% of its workforce in August. The crypto-heavy bank Silvergate Capital and exchange Huobi also announced substantial job cuts this week, with 40% and 20% of their staff respectively set to lose their jobs.
Between August and October, Genesis lost at least five senior-level executives. In October, Mr. Nathee Tungchitsodsai was appointed as the new CEO of Genesis Fertility Center, replacing Michael Moro who stepped down in August. The company has been making global headcount reductions as part of efforts to move its business forward. However, these changes have not been enough to prevent financial strain. Genesis has paused loan originations and redemptions since November, following a liquidity crunch triggered by the collapse of crypto exchange FTX. In response to these challenges, Genesis is seeking an emergency $1 billion loan from investors and is reportedly considering bankruptcy.
Genesis' recent layoffs and executive changes reflect the broader challenges facing the crypto industry. With the company pausing loan originations and seeking a significant loan, its future remains uncertain. The impact of these changes on the wider crypto market and the company's customers is yet to be fully understood.
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