According to CryptoPotato, Paxos, a company known for issuing stablecoins, has reduced its workforce by 20%, resulting in a loss of 65 employees. This information was revealed in an internal email. Charles Cascarilla, the CEO and co-founder of Paxos, stated that this reduction would enable the company to seize future opportunities in the stablecoin and tokenization sectors. The company plans to discontinue some of its services to concentrate on these areas.
The affected employees were offered three months of subsidized health insurance, outplacement support, 13 weeks of severance pay, and a two-year extension to exercise vested options. Employees participating in a quarterly incentive program will receive bonuses for the second quarter. Those on approved parental or medical leave will receive certain payments and benefits. Following these layoffs, Paxos' workforce now ranges between 200 and 300.
Despite the layoffs, Cascarilla confirmed that Paxos is in a strong financial position, with over $500 million in its balance sheet. He took responsibility for the decision, expressing regret but emphasizing the opportunity ahead in tokenization and stablecoins. The layoffs at Paxos follow a similar move by crypto payments infrastructure company MoonPay, which recently let go of 10% of its workforce due to overinvestment and a high-cost structure.
In related news, Paxos' United Arab Emirates branch recently launched a new yield-bearing stablecoin, the Lift Dollar (USDL). The USDL is designed to distribute the yield generated from its reserves to eligible wallet addresses daily.
