Stablecoin Issuers Paxos The company announced a 20% workforce reduction, affecting approximately 65 employees. Despite the layoffs, the company is reportedly still in strong financial shape, with over $500 million on its balance sheet.
After the layoffs, Paxos now has an estimated 200 to 300 employees, according to a source familiar with the matter.
Affected employees will receive 13 weeks of severance pay, three months of subsidized health insurance, three months of outplacement assistance and a two-year extension to the exercise period of their vesting options.
Additionally, the company is offering second-quarter bonuses to employees who participate in its quarterly incentive program and is providing additional benefits to employees with approved parental or sick leave.
Charles Cascarilla
Paxos co-founder and CEO Charles Cascarilla announced the cuts in an internal company email obtained by The Block.
Cascarilla explained that the decision, while difficult, will allow the company to focus on the huge opportunities in tokenization and stablecoins, highlighting Paxos’ strong financial position, with over $500 million on its balance sheet.
A Paxos spokesman confirmed the email. block.
In 2021, Paxos was valued at $2.4 billion. Secures $300 Million in Series D Funding Round.
The layoffs come following the launch of Lyft Dollar (USDL), a regulated yield-bearing stablecoin, by the company’s UAE-based subsidiary, Paxos International.
The company is now focusing more on regulated stablecoins and tokenization.
Paxos plans to prioritize its core products and move away from developing new products and features that are not central to its strategy, the sources said.
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