Stablecoin issuer Paxos has announced a 20% workforce reduction, affecting about 65 employees. Despite the layoffs, the company reportedly remains in a strong financial position with over US$500 million on its balance sheet.
Following the layoffs, Paxos’ workforce is now estimated to be between 200 and 300 employees, according to a source familiar with the situation.
Impacted employees will receive 13 weeks of severance pay, three months of subsidised health insurance, three months of outplacement support, and a two-year extension for exercising vested options.
Additionally, the company has provided second-quarter bonuses for those on a quarterly incentive programme and extra benefits for those on approved parental or medical leave.
Charles Cascarilla, Co-founder and CEO of Paxos, communicated the layoffs in an internal email obtained by The Block.
Cascarilla explained that the decision, although difficult, allows the company to focus on significant opportunities in tokenisation and stablecoins, emphasising Paxos’ strong financial position with over US$500 million on the balance sheet.
A Paxos spokesperson confirmed the contents of the email to The Block.
In 2021, Paxos was valued at US$2.4 billion after securing US$300 million in a Series D funding round.
The layoffs follow the launch of Lift Dollar (USDL), a regulated yield-bearing stablecoin, by Paxos International, the company’s UAE-based entity.
The company is now focusing more on regulated stablecoins and tokenisation.
Paxos plans to prioritise its core offerings and move away from developing new products and features that are not central to its strategy, as per a source.
Featured image credit: Edited from Freepik
