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Meta Cuts 11,000 Jobs to Focus on Core Areas Including the Metaverse

by Blockchain NewsNovember 9, 2022

Facebook parent company Meta Platforms Inc has confirmed the cut of 11,000 jobs or 13% of its global workforce as it seeks to focus on its core business areas.

Justifying the Meta Platforms Job Cut

With earlier reports pointing to this possibility, the company’s co-founder and Chief Executive Officer, Mark Zuckerberg confirmed this in a letter sent to all employees as revealed on Tuesday.

Per the letter, Zuckerberg apologized for over-projecting the company’s growth which led to the hiring of more staff than it could sustain in the near future. Following the laying off, he noted that the company will be focusing on “a smaller number of high priority growth areas — like our AI discovery engine, our ads and business platforms, and our long-term vision for the metaverse.”

The company announced its change of name from Facebook Inc to Meta Platforms Inc last year as it unveiled the plans to pivot into the emerging metaverse world. The company injected billions of dollars into its metaverse research, as it looks to the new tech as what will define the future of social interaction.

Its metaverse engagements have taken a big hit since the company started investing in the space. As reported by Blockchain.News, Meta’s metaverse division recorded a $3.7 billion loss in the third quarter (Q3) of this year, a figure that has further highlighted the capital frailty of the company.

Impact of the Meta Plan on Metaverse Development

The recorded metaverse loss and the aftermath bordering on staff layoff might stir a significant slowdown amongst Web2 companies looking to make their forays into the metaverse.

The rationale is very simple and is bound to be hinged on the fact that if Meta Platforms could run at a loss with their massive capitalization, then the discovery of the company is more or less a gamble that may need to be waited out.

This development may stir a slowdown in the integration of metaverse solutions, especially with the implosion of FTX Derivative Exchange still fresh on everyone’s minds.

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CoinFLEX Cuts Down on Staff Strength Amid Stability Woes

by Blockchain NewsJuly 30, 2022

Updating its users on the latest for the week, cryptocurrency exchange CoinFLEX has announced that it is cutting down on its staff strength.

The retrenchment process will run across its various departments and geographic locations. This is all in a bid to reduce its running cost and focus its funds on its core business after the distribution of the CoinFLEX Composites.

The CoinFLEX Composite is inclusive of rvUSD, equity, and FLEX Coin. The exchange has been working on these CoinFLEX Composites for a while now. The process involved several lawyers and a significant creditor’s group putting up strategies for their distributions. The plans are yet to be perfected but will be in the near term.

After the distribution of these Composites, it is suspected that the business might not run smoothly for a lack of funds. Therefore, the need to become a leaner business staffing-wise. It’s quite unfortunate but necessary for the exchange to let go of a significant number of its employees. Estimated, the cut will reduce CoinFLEX’s cost base by almost 50-60%.

Key members of CoinFLEX’s staff will be retained on its team. The remaining staff will focus their research and outputs on products and technology. The firm will fix structures in place to monitor its cost and scaling process to ensure efficiency. CoinFLEX wishes to be prepared with the right workforce and economy size, in readiness for an acquisition or partnership with any entity.

The updated details of the CoinFLEX Composite distribution will be published next week. So far, its delay is associated with significant legal and accounting procedures which need to be completed.

CoinFLEX Introduces New Token

In the thickness of the crypto winter, CoinFLEX had to halt withdrawals on its platform. Although there were suspicions that it was not only due to the extreme market conditions but also from issues involving a counterparty. Soon after, the withdrawal suspension, CoinFLEX revealed its plan to raise funds by issuing a new token.

The new token “Recovery Value USD” (rvUSD) which is one of the CoinFLEX Composite offers a 20% annual percentage rate (APR). Ultimately, this is a strategy to offset the $47 million debt owed by a high-profile investor known as Bitcoin (BTC) Jesus.

CoinFLEX plans to keep working to remain afloat in the current crypto economy.

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Tagged : COINFLEX / Crypto Winter / News / RETRENCHMENT

Australia’s Crypto Processing Firm Banxa to Lay off One-Third of its Staff

by Blockchain NewsJune 28, 2022

Australian cryptocurrency payments processing firm Banxa Holdings has disclosed its plans to retrench almost a third of its staff, making the headlines as one of the platforms to explore this route in its cost-cutting mission.

Just like its counterparts in the United States and worldwide, the recent plummeting activities in the digital currency ecosystem are negatively affecting Banxa. In light of these realities, Chief Executive Officer Holger Arians said the move to retrench is the best way the company can chart a sustainable way out of the current economic turmoil plaguing the entire world.

“Banxa must take decisive actions to reduce costs now, or else our company won’t be able to succeed over the long run,” he wrote, adding that “While we have made a number of budget cuts, our employee costs remain too high for us to be able to continue to operate in our current structure … we had hoped to make gradual adjustments to Banxa’s business, but macro conditions accelerated our timeline.

According to Holger, the current economic conditions have “put even more pressure on Banxa’s leadership team to make necessary changes to our company’s cost structure.”

While Banxa has obligations to a broader range of investors as it is publicly traded on the Toronto Stock Exchange (TSX), Holger will at least be able to present a remedy to salvage costs seeing how fast the firm’s shares have been plummeting in recent times.

Banxa is processing digital currency-related payments for platforms in the Web3.0 world. The firm confirmed that its role is becoming more relevant by the day and that it needs to concentrate its resources on what truly matters. This position is exactly what Coinbase, Gemini, and Bybit identified as the primary reasons why they have also initiated employee cut-offs as preparation is made for the crypto winter many are predicting may be well drawn out.

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Tagged : BANXA HOLDINGS / Coinbase / Enterprise / RETRENCHMENT