Circle, a crypto-focused finance startup backed by U.S. investment banking firm Goldman Sachs, has cut 10% of its workforce.
The layoffs are happening amid sentiments from the company’s chief executive that appears to lay the blame on a restrictive regulatory environment in the U.S. market.
Circle CEO Jeremy Allaire confirmed on Twitter yesterday that the firm would lay-off 30 of its employees.
The job cuts come after Allaire wrote in a May 20 Medium post that the U.S. crypto policy needed to change. He described how the current regulatory terrain was tough on crypto firms in general.
Circle executives apparently agreed to lay-off one in every ten of its staff as a result of these difficulties.
The social media post stated that the company had made some organizational changes that had seen it “eliminate” roughly 30 positions. These changes affected close to 10% of the staff, the post added.
Explaining the decision, Allaire stated that Circle was responding to “new market conditions,” especially as regards the U.S. regulatory climate that has increasingly become “restrictive.”
The Circle chief had earlier observed that the U.S. crypto space needed to have regulatory certainty. Apparently, he seemed to be referring to the slow pace at which regulators seem to move towards having a properly regulated landscape.
Allaire has, however, remained upbeat that things are bound to improve in the long-term, even if the current scenario does not provide such an encouraging backdrop.
Circle recently announced that it would not allow U.S. residents to buy nine cryptocurrencies on its Poloniex crypto exchange. The company cited regulatory uncertainty as the main reason behind the move.
The decision to lay-off staff sees Circle joins other companies within the crypto space that elected to take similar routes. These include the likes of Chinese-based bitcoin mining firm Bitmain, development studio ConsenSys and Singapore-based crypto exchange Huobi.
The firms sent home several of their employees as they restructured to cope with the biting crypto winter.