Celsius, an American-Israeli crypto lender, has reportedly laid off approximately 150 employees as it navigates a financial crisis that led to the suspension of customer withdrawals last month, as reported by Calcalist over the weekend.
The company, which has about 650 staff members listed on LinkedIn, including executives, saw approximately 23% of its workforce affected by the layoffs.
These layoffs come amidst uncertainty for Celsius as it grapples with potential insolvency. In June, the company halted withdrawals citing “extreme market conditions” and has since enlisted restructuring specialists. Celsius stated that it is exploring options to “preserve and protect assets” following the turmoil experienced in mid-June.
Goldman Sachs (GS) is reportedly leading a $2 billion raise from investors aimed at acquiring Celsius’s distressed assets. However, crypto exchange FTX is said to have opted out of a deal to purchase the lender after examining its financial situation.
Celsius’s layoffs add to a growing trend of crypto firms reducing their staff amid bearish market conditions. In June, Coinbase (COIN) laid off over 1,100 employees, while exchanges such as Bybit, Huobi, Banxa, and others have also downsized their workforce in the past month.
Despite the challenges faced by Celsius, prices of its CEL tokens surged by 15% in the past 24 hours, according to CoinGecko data.
