Crypto payments infrastructure company MoonPay cut 10% of its workforce due to its high cost structure and below-expected operating margins.
“Today we are implementing a series of role eliminations, role relocations, and structural changes which impact about 10% of our staff,” MoonPay co-founder and CEO Ivan Soto-Wright wrote to employees in an email on Wednesday. “These changes will allow us to improve our cost structure and strengthen our foundation.”
The email did not specify the number of employees affected, but 10% appears to be around 30 people, given that MoonPay’s current headcount seems to be around 300, according to LinkedIn records. A MoonPay spokesperson declined to specify the number when contacted.
The layoffs come despite MoonPay being “financially sound and strong with years of runway ahead,” Soto-Wright noted in the email.
“Yet, despite this, the operating margins for our business are unfortunately not where they should be,” he said, adding: “Although we are cash-flow positive, our cost structure is too high due to over-investment in some areas and geographies. Ultimately, this is on me as CEO and it would be irresponsible to our team (you) and our shareholders not to address this.”
Affected MoonPay employees could get separation packages, according to the email. “It is personally important to me that all those impacted will continue to have the opportunity to be shareholders in the company and are recognized in our future success,” Soto-Wright said.
The MoonPay layoffs come as the company has been launching new products and services. In recent weeks, it has launched a new web3 tool platform for brands venturing into crypto, integrated PayPal to allow U.S. users easier access to crypto purchases and sales, and partnered with BitPay to streamline crypto transactions.
MoonPay is backed by high-profile investors, including Paradigm and Coatue. The company was valued at $3.4 billion when it raised a massive $555 million Series A financing round in 2021. Last year.