According to an internal memo obtained by The Block, CoinDesk, a leading crypto media outlet, is undergoing a major restructuring that will result in 45% of its editorial staff being laid off.
Scoop: Layoffs expected at CoinDesk https://t.co/PLq1xERpMJ
— Dan Primack (@danprimack) August 14, 2023
The move is part of a strategy by its parent company, Digital Currency Group (DCG), to attract strategic investors for CoinDesk Inc., the memo said.
The memo, which was circulated on Monday, announced that 20 editorial team members, or nearly half of the team, will lose their jobs.
This will also reduce the company’s overall workforce by 16%.
Kevin Worth, the CEO of CoinDesk, said that this was a “necessary step to ensure a sustainable business going forward,” implying that the move is aimed at finalizing a deal to sell CoinDesk Inc.
CoinTelegraph has obtained a leaked email that reveals that CoinDesk, a prominent crypto media outlet, will hold a meeting with all its staff at 4:00 pm ET on Aug. 14.
The email comes amid rumors of CoinDesk being sold by its parent company, Digital Currency Group (DCG), which is led by Barry Silbert and also owns Grayscale Investments, Genesis, Foundry and Luno.
DCG has faced several challenges due to the crypto market downturn. Genesis went bankrupt in January, after owing DCG $1.1 billion due to the collapse of Three Arrows Capital, one of its creditors.
Genesis and Gemini were also sued by the SEC in January for selling unregistered securities.
Additionally, DCG is under investigation by the New York State Department of Financial Services and the New York Attorney General Letitia James, according to a report in early August.
These factors could have influenced DCG’s decision to cut down CoinDesk’s staff.