Fireblocks, a digital asset custody platform, is slashing its headcount by 5%, according to a report. Fireblocks joins a growing list of Fintechs that have looked to cut costs in a challenging macroeconomic environment.
Fireblocks is a young provider in the digital asset sector that has generated solid traction as it enables its clients to store, transfer and issue digital assets. Digital assets have a dodgy history of being pilfered by nefarious actors, and Fireblocks is a top firm providing a secure process for Fintechs and traditional finance to operate with confidence. Over 1500 customers use the platform.
As reported today, Calculist states that Fireblocks is cutting 30 positions. Fireblocks CEO Michael Shaulov is quoted on the decision:
As we prepare for our next wave of growth, we want to ensure we are optimized to capture and serve Fireblocks’ new verticals, use cases and markets. As a result of this need, we underwent a small restructuring to the footprint of our global teams which will help position us to more effectively meet our business objectives and customers’ needs in 2023. We are working with each impacted employee to ensure they transition to another great opportunity and thank each of them for their contributions to Fireblocks.”
The news is interesting a year ago, Fireblocks raised $550 million in Series E funding at an $8 billion valuation. At that time, Shaulov stated:
“The adoption of cryptocurrencies across the financial and commercial sectors is going to accelerate in 2022, and Fireblocks’ mission is to be a strategic partner for these new market entrants. We are thrilled to be joined by the top growth investors. The new round of financing will accelerate our ability to support our clients globally, as well as heavily invest in innovation for DeFi, NFTs, and payments, and allow new and established financial institutions to employ direct custody rather than relying on third parties, which will increase their competitive advantage.”
While Fireblocks may have reduced some positions, it should be noted that the company still lists over a dozen open positions on its website, so perhaps the company is just realigning priorites.