Due to the current economic climate, CoinTracker has laid off 20% of its workforce.

CoinTracker, a virtual currency tax and portfolio tracker, has announced a new round of layoffs, affecting 19 employees. The elimination of 19 positions results in a 20% reduction in staff strength.

The firm blamed the contract terminations on unfavorable conditions caused by rapidly declining virtual currency values and a drop in its user base, according to a statement. CoinTracker executives also stated that the company’s principle of increasing hiring rates may have put a significant strain on its financial condition.

The majority of the layoffs affected employees in the customer support department, implying that CoinTracker will not be expanding in the coming months. Affected individuals were offered 12 weeks of pay and three months of health care coverage, as well as the option to remain shareholders in the company.

“Today, we face the crypto winter, an unstable economy with high inflation and rising interest rates, and additional headwinds from crypto tax regulations,” said CoinTracker CEO Jon Lerner. “This is a very different environment than we had from mid-2020 to mid-2022. Our expectations for 2023 differ from those we had last year.”

CoinTracker announced plans to expand its workforce in the midst of mass layoffs in June 2022, claiming that it was “well positioned to continue building a generational company that will last long beyond the next recession (or crypto winter).” CoinTracker’s belief was founded on a $100 million Series A funding round that valued the company at $1.3 billion.

“Today is a difficult day,” company CEO Lerner said. The company remained upbeat about the future and expressed determination to get back on track with its goal of “expanding globally.”

Layoffs are becoming more common.

The year began with enthusiasts hoping that the waves of layoffs would be a thing of the past, but the spree appears to be continuing through 2023. Coinbase (NASDAQ: COIN), the largest virtual currency exchange in the United States, announced 950 job cuts, or 20% of its workforce.

Crypto.com and Huobi have taken a similar stance, announcing that they, too, will be terminating employee contracts in order to navigate the murky waters of falling prices. Luno announced plans to lay off 35% of its workforce, claiming that the company “has not been immune to this turbulence” that has harmed its growth and revenue.