CoinDesk has Staff Cut in Half as Sell Off Looms
How will the crypto space transform after Coindesk falls under new management?
Key Takeaways
- CoinDesk is laying off a huge chunk of its workforce, mostly in the media department.
- The publication is in the process of being sold for over $100 million.
In July, investors announced that they were in the process of acquiring CoinDesk, a popular crypto-focused publication, for $125 million.
Now, an internal email within CoinDesk shows that a significant number of staff members are in danger of being laid off ahead of the publication’s sale.
“A Financially Sound Business”
The email sent by Kevin Worth, CEO of CoinDesk, reports that “Several roles, predominantly in our media team, were impacted by a reduction in force.”
Worth detailed the reasons behind the mass layoff in his email, stating that “This was a required step to ensure a financially sound business moving forward and to set us on the path to close the deal to sell CoinDesk, Inc.”.
Tech Crunch reports that 16% of CoinDesk’s workforce is directly affected by the company’s decision. CoinDesk did not immediately respond to a request for comment.
A Major Loss In The Crypto Space
CoinDesk gained its fame in 2022 when it broke the story on FTX’s inconsistent financial records, which caused a butterfly effect that led to the popular crypto exchange’s collapse.
In an industry heavily influenced by news headlines and opinions from key influential figures such as Elon Musk, it is deemed as a loss to see the departure of a reputable publication that helps stakeholders receive detailed news on crypto.
New Management
CoinDesk has been owned and managed by DCG since 2016. DCG also happens to be the parent company of Grayscale Investments, Foundry, Genesis, and Luno.
Now, a group of investors, led by Matthew Roszak of Tally Capital and Peter Vessenes of Capital6, is aiming to acquire the publication created back in 2013.
