Paxos lays off 20% of its staff to focus on tokenization and stablecoin business

According to reports, Paxos, a stablecoin issuing company, recently laid off 20% of its employees, or 65 employees, to adapt to the company's strategic adjustments. The current total number of employees is between 200 and 300.

According to internal emails cited by Bloomberg, Paxos CEO Charles Cascarilla pointed out that the layoffs are to better grasp future opportunities in the field of tokenization and stable coins, and plan to gradually phase out some services and concentrate resources on developing the main business.

Provide compensation plan for laid off employees

Paxos provides laid-off employees with a compensation package including three months of subsidized medical insurance, reemployment support, 13 weeks of severance pay, and a two-year extension of vested option exercise. In addition, employees participating in the quarterly incentive plan will receive second-quarter bonuses, and employees taking parental leave or sick leave will also receive corresponding compensation and benefits.

Despite the layoffs, Cascarilla emphasized that Paxos is in a solid financial position, with more than $500 million on the company's balance sheet, and that the layoffs are part of a strategic adjustment to ensure that the company can fully capitalize on its growth in tokenization and stablecoins. Huge opportunity.

Financially sound but layoffsAttention

Interestingly, although Paxos claims to be in good financial shape, the layoffs raise questions about the company's strategy and operations.

"This has been a difficult day," Cascarilla said. "I take responsibility for this decision and regret having to take this approach... We communicated this message directly to all 65 affected team members."

Paxos launches new income stablecoin

Shortly before the news of layoffs was released, another crypto payment infrastructure company, MoonPay, also laid off 10% of its employees due to lower-than-expected operating profit margins and cost structure issues. MoonPay stated that the layoffs are to improve the cost structure, and the company's financial situation is good, cash flow is positive, and it is optimistic about future development.

Meanwhile, Paxos’ branch in the United Arab Emirates recently launched Lift Dollar (USDL), a new yield stablecoin designed to pay out daily yields generated from its reserves to eligible wallet addresses, showing Paxos’ innovation and expansion in the stablecoin field.

Conclusion:

The layoffs and strategic adjustments at Paxos reflect that while the cryptocurrency industry is developing rapidly, companies are also actively seeking more effective operating models and business focus.

Despite its solid financial position, Paxos has demonstrated its keen insight into market opportunities and firm confidence in future development by laying off staff and optimizing services.

At the same time, the newly launched USDL also marks Paxos’s continued innovation and market expansion in the stablecoin field.

The above is the detailed content of Paxos lays off 20% of its staff to focus on tokenization and stablecoin business. For more information, please follow other related articles on the PHP Chinese website!