The CoinFLEX trading platform, in order to maintain investment attractiveness, is reducing the wage fund.
CoinFLEX is going through hard times right now. The company announced that it has laid off a “significant number” of employees across departments and geographies to cut costs and focus on its core business. The remaining employees are now focused on products and technologies developed and produced by the company itself. CoinFLEX co-founders Sudhu Arumugam and Mark Lamb said they were driven to this step by cost optimization due to large debt:
“We will monitor costs to ensure we operate as efficiently as possible and scale as volumes return. We intend to keep the business looking attractive to any organization considering an acquisition or partnership with CoinFLEX.”
It is clarified that the job cuts at CoinFLEX occurred after management proposed a plan to compensate depositors. The company is seeking to restore its financial position as it intends to recover more than $84 million in debt owed to a “large individual customer.”
The exchange promises to provide an update next week, when all the opinions of investors will be collected. The CoinFLEX team stated that the delay in returning money to users is due to legal and accounting procedures.
OpenSea CEO Devin Finzer recently revealed that the company needs to adapt to current market conditions and is therefore laying off 20% of its staff. The exact number of layoffs is unknown, as well as the specific affected departments of the company.
Source: Bits
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