It is reported that Paxos, a stablecoin issuing company, recently laid off 20% of its employees, or 65 employees, to adapt to the company's strategic adjustments. The total number of employees is currently between 200 and 300.
According to an internal email cited by Bloomberg, Paxos CEO Charles Cascarilla pointed out that the layoffs are to better grasp future opportunities in the fields of tokenization and stablecoins, and plans to gradually eliminate some services and concentrate resources on developing the main business.
Providing compensation packages to laid-off employees
Paxos provides laid-off employees with compensation packages including three months of subsidized health insurance, re-employment support, 13 weeks of severance pay, and two years of deferral of vested options. In addition, employees who participate in the quarterly incentive plan will receive a second quarter bonus, and employees who are on parental leave or sick leave will also receive corresponding compensation and benefits.
Despite the layoffs, Cascarilla stressed that Paxos is in a strong financial position, with more than $500 million on the company’s balance sheet, and that the layoffs are part of a strategic realignment to ensure the company can fully capitalize on the massive opportunities in the tokenization and stablecoin space.
Financial stability but layoffs attract attention
Interestingly, despite Paxos’ claims of being in good financial shape, the layoffs raise questions about the company’s strategy and operations.
"This is a difficult day," Cascarilla said. "I take responsibility for this decision and regret having to take this course of action... We communicated this news directly to all 65 impacted team members."
Paxos Launches New Yield-Bearing Stablecoin
Shortly before the layoffs were announced, another crypto payment infrastructure company, MoonPay, also laid off 10% of its employees due to lower-than-expected operating profit margins and cost structure issues. MoonPay said that the layoffs were to improve the cost structure, and that the company was in good financial condition, with positive cash flow, and was optimistic about future development.
Meanwhile, Paxos’s branch in the United Arab Emirates recently launched a new yield-generating stablecoin, Lift Dollar (USDL), which is designed to pay the yield generated by its reserves daily to eligible wallet addresses, demonstrating Paxos’ innovation and expansion in the stablecoin space. #Paxos #裁员 #稳定币
Conclusion:
Paxos' layoffs and strategic adjustments reflect that as the cryptocurrency industry develops rapidly, companies are actively seeking more efficient operating models and business focus.
Despite its strong financial position, Paxos has demonstrated its keen insight into market opportunities and firm confidence in future development by cutting staff and optimizing services.
At the same time, the newly launched USDL also marks Paxos' continued innovation and market expansion in the field of stablecoins.
