Crypto startup Circle lays off 10 pct of its staff

Circle has become the latest company in the crypto space to lay off staff, CoinDesk reported.

The startup raised $110 million in a Series E round last year and is backed by some of the biggest names in the industry including Goldman Sachs. Circle acquired Poloniex cryptocurrency exchange in February 2018 and completed the acquisition of SeedInvest earlier this year.

Reports have also suggested that the company was seeking to raise a further $250 million in a combination of equity and debt.

However, in a bid to cut costs, Circle has now laid off around 30 people, or about 10 percent of its staff.

“We made these changes in response to new market conditions, most importantly, an increasingly restrictive regulatory climate in the United States,” Circle CEO Jeremy Allaire told CoinDesk.

“Circle remains strong and healthy, and we will continue to drive new product innovation and growth globally, working with jurisdictions that offer forward-looking policies regulating digital asset businesses, while we press for more balanced crypto policy in the U.S.”

A source familiar with the matter told CoinDesk that the layoffs were primarily made in the company’s Boston headquarters, adding that employees across finance and product departments at the New York office have also been laid off. In addition, some unfilled positions have also been cut.