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Paxos reports cutting workforce by 20%: details

by xyonent
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Stablecoin issuer Paxos has laid off 20% of its staff, reducing its headcount by 65 people, Bloomberg reported on Thursday, citing an internal email.

by reportPaxos CEO and co-founder Charles Cascarilla said the job cuts will allow the company to capitalize on future opportunities in the tokenization and stablecoin space, which Paxos plans to phase out some of its services in order to focus on.

Paxos lays off 65 employees

The stablecoin issuer offered affected individuals three months of health insurance and outplacement assistance, 13 weeks of severance pay, and a two-year extension to the exercise of vesting options. In addition to severance pay, employees participating in the quarterly incentive program will receive a second-quarter bonus, while employees approved for parental or sick leave will receive certain payments and benefits.

Due to cuts, Paxos’ employee headcount now hovers between 200 and 300 people.

Interestingly, Cascarilla said Paxos has over $500 million on its balance sheet and is in a stable financial position, which raises the question of why the company is cutting its workforce.

“Today is a difficult day. I take ownership of this decision and regret having had to choose this path. We have communicated this news directly to all 65 affected team members, which will position us to take full advantage of the huge opportunities ahead in tokenization and stablecoins. With over $500 million on our balance sheet, we are in a very strong financial position to succeed,” Cascarilla said.

Paxos Launches Yield-Proof Stablecoin

Paxos’ employee layoffs come a week after cryptocurrency payments infrastructure company Moonpay laid off employees. Let go The company announced that it would cut 10% of its workforce due to lower-than-expected operating margins and a high cost structure caused by overinvestment. The company said the job cuts and reassignments would improve its cost structure and strengthen its base.

Like Paxos, MoonPay said it is in a strong financial position, with positive cash flow and ample room for growth over the next few years. Affected employees will also receive severance packages and will have the opportunity to continue to be shareholders in MoonPay.

Meanwhile, Paxos’ UAE branch recently start Lift Dollar (USDL), a new yield-bearing stablecoin. USDL is designed to pay yield generated from reserves to eligible wallet addresses daily.

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