Switzerland based cryptocurrency exchange Shapeshift has said it will lay off a large part of its workforce. The announcement on January 8 was made by CEO of Shapeshift Eric Voorhees. He noted that one-third of the current workforce would be let go. The Twitter announcement was accompanied by a blog post where it was stated that 37 employees were laid off. According to Voorhees, the reduction in headcount had been due to relentless market forces at play and a prevailing bear market in cryptocurrency. His comment also said that broad exposure to crypto assets had been a significant mistake on the part of the company.
The company has been under attack from all sides. There were legal issues and also problems with finding requisite manpower. Customers had been complaining about the poor quality of service added to which were problems of finances and raising capital. All of these factors had combined together to create a situation where the company had been forced to take the drastic step. So many different problems had meant that product development had dropped from being the first priority.
In the recent past, the company had significantly diversified and acquired KeepKey wallet as well as CoinCap. These acquisitions had come at a cost since there was not enough managerial depth in the business to manage these new assets. Resources had also hit a low following these buyouts. The CEO accepted that the blame was his and that there had been a lack of sufficient momentum at some points. Due to growing pressure from regulators Shapeshift had been forced to introduce KYC norms. This had meant that users had to submit and verify their identity. The move had not been at all welcomed by, and several partners had moved away. In 2017 Shapeshift had grown tremendously and the company has been under considerable strain to manage its rapid growth.