Mercado Bitcoin, one of the largest Brazilian cryptocurrency exchanges, has announced a new wave of layoffs amid the deteriorating global economic situation for fintech startups, whose exchange countries are affecting innovation-driven companies. The exchange laid off 15% of its workforce on September 1, and this is the company’s second round of layoffs in three months.
Brazilian Mercado Bitcoin Exchange announces a new wave of layoffs
Cryptocurrency companies in Latin America and all over the world are negatively affected by the recent downturn in the crypto and traditional markets. Mercado Bitcoin, a cryptocurrency exchange based in Brazil, has announced a series of layoffs due to global economic conditions.
according to local mediaMercado Bitcoin left 15% of its workforce on September 1, as part of a series of actions taken by 2TM, the stock exchange’s holding company, directed at streamlining operations.
In a statement, the company also criticized the Brazilian government for sidelining the discussion of a crypto bill in favor of activities related to the upcoming general elections. Mercado Bitcoin mentioned:
Adversity continues in the economy, the competitive environment continues to deteriorate and [is] Unfair, without agreeing to the legal framework for crypto assets, with players following laws that penalize companies that ignore local rules.
layoffs a lot of workers
This is the second time the company has decided to lay off employees in less than three months. It was the first wave of layoffs executed In June, the company laid off 90 employees with the goal of maintaining its operations in the future. At the time, the company said the move was part of a series of “tweaks” that went beyond simply reducing operating expenses.
This time, as well as during the first wave of layoffs, former employees will receive benefit packages to help them while they look for new jobs, and ongoing medical insurance.
Other LATAM exchanges have also laid off part of their staff to reduce their expenses. Such is the case with Bitso, a Mexico-based exchange, and Buenbit, an Argentine exchange, both of whom have to reduce their workforce to survive the current market downturn.
Mercado Bitcoin Scored A $200 million investment from SoftBank in July 2021, reaching Unicorn’s position in one of the largest funding rounds Latam has seen. Later, in December, exchange announce Closing a second Series B funding round, adding another $50 million in investments.
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