The first federal chartered crypto financial provider Anchorage Digital has revealed plans to downsize the workforce. A report from the Anchorage management dated March 13 revealed that the firm would trim 20% of its workforce to survive the harsh macroeconomic impulses and unprecedented crypto market.

In the previous trading year, Anchorage dismissed 75 staff to survive the prolonged ripple effect caused by  the collapse of the Bahamian crypto exchange FTX.

Anchorage Layoff Plan

A statement published by the Anchorage team on March 14 revealed that the company would dismiss 70 employees. In the report, the company lamented that the decision to axed 20% of the workforce was prompted by the current economic factors affecting the crypto space. The US-based crypto bank also argued that the regulators’ spiking appetite to reign in the crypto world influenced the company to downsize.

The report disclosed that the company would prioritize engaging in activities that lead to attain the company’s long-term goal. The company plans to develop innovative products to meet market demand and uphold conformity with the regulation. 

Furthermore, the embattled crypto bank plans to improve its digital custodial services to cope with emerging economies and be competitive.

Based on the report, the layoff plans will have minimal impact on the operation of Anchorage.

Beyond this, the Anchorage layoff plans come when the best-performing crypto banks Signature and Silvergate Capital are exiting the digital world. The fallout of the crypto banks has challenged the regulatory watchdogs in the United States to take meaningful action to scrutinize the matter.