Stablecoin issuer Paxos has made the difficult decision to reduce its workforce by approximately 20%, despite maintaining a strong financial position.
In an email obtained by The Block, Paxos co-founder and CEO, Charles ‘Chad’ Cascarilla, informed employees of the layoffs, emphasizing the company’s commitment to capitalizing on opportunities in tokenization and stablecoins. With over $500 million on its balance sheet, Paxos remains well-positioned for success.
Affected employees will receive a comprehensive severance package, including 13 weeks of severance pay, subsidized health insurance, and outplacement support. Additionally, Paxos has extended options exercise deadlines and provided bonuses and benefits to eligible individuals.
Following the workforce reduction, Paxos’ headcount now ranges between 200-300 employees, according to sources familiar with the matter.
This move comes shortly after Paxos launched Lift Dollar (USDL), a regulated yield-bearing stablecoin, signaling the company’s increased focus on regulated stablecoins and tokenization. Cascarilla expressed confidence in the growth potential of stablecoins, emphasizing their role in democratizing access to the financial system.
Despite Paxos’ solid financial standing, the decision to streamline operations reflects a strategic shift towards core offerings, with a reduced emphasis on peripheral products and features.
Paxos joins a growing list of crypto companies, including MoonPay, that have implemented workforce reductions despite robust financial positions, underscoring the evolving dynamics within the industry.
