Due to the enduring downturn in the crypto industry, Ledger has made the strategic decision to cut down its workforce by 12%, according to an Oct. 5 blog post from its CEO, Paul Gauthier. The decision stems from the macroeconomic conditions that have adversely influenced revenue generation, making it imperative for the company to focus on long-term sustainable business strategies.
“Macroeconomic headwinds are limiting our ability to generate revenue, and in response to the current market conditions and business realities, we must reduce roles across the global business.”
He stressed that despite the painful choice of layoffs, the ongoing market challenges necessitate such moves to protect the future of the business. Details about the affected employees remain undisclosed.
The crypto industry is currently fighting several challenges, including regulatory hurdles and interest rate hikes, leading to decreased trading volumes and funding, along with a decline in interest and prices in formerly hot sectors like Non-Fungible Tokens (NFTs). These unsettling conditions have forced several crypto companies to resort to layoffs and cost-cutting measures.
Founded in 2014 by Eric Larchevêque, Ledger has carved a niche for itself as a leading creator of secure hardware wallets that protect users’ private keys to their blockchain assets. The past year has seen a surge in demand for Ledger’s products due to heightened concerns about crypto safety following high-profile hacks and the failure of some crypto exchanges. Earlier this year, Ledger raised approximately €100 million in a funding round, which resulted in a company valuation of around €1.3 billion. Ledger’s devices reportedly store over 20% of the world’s cryptocurrencies and 30% of global NFTs.
Despite the streamlining measures, Ledger continues to innovate, as demonstrated by the upcoming launch of Ledger Recover. This feature will provide users with a way to regain wallet access after losing key information. Although the Recover feature has been controversial as it requires data storage with third parties, Ledger has confirmed that this feature will be optional. Critics argue that the hardware and firmware capabilities that support the Recover feature present a risk in and of themselves. Despite such concerns, Gauthier called the Recover a necessary service for the next generation of users.
According to its CEO Ledger’s retail business remains vibrant. He reported increased usage, revenue, and transaction volumes for Ledger Live, a mobile app. Attention was also drawn to the recent Ledger Stax model, featuring an e-ink display.