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New York’s blockchain company, R3, has reduced its workforce by over 20% as a cost-saving measure due to lower-than-expected adoption rates in the financial sector. 
Bloomberg <a href="https://www.bloomberg.com/news/articles/2023-09-14/blockchain-startup-r3-trims-fifth-of-jobs-in-cost-cutting-drive" target="_blank" rel="noopener noreferrer nofollow">reported</a> that while R3 have seen potential with central banks, other projects didn’t perform as expected, affecting their revenue. 
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 In a world of uncertainties, R3’s layoffs showcase the tough terrain startups navigate. How has your own startup adjusted to stretch its financial runway?— INSIDE.COM (@inside) <a href="https://twitter.com/inside/status/1702386712062636443?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 14, 2023</a> 
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Although exact numbers were not <a href="https://r3.com/blog/r3s-commitment-to-shaping-the-future-of-finance-and-resilience-in-navigating-economic-realities/" target="_blank" rel="noopener noreferrer nofollow">provided</a>, anonymous sources indicate that this downsizing will impact multiple departments. 
While R3 has gained attention from central banks for digital currency projects, some areas like trade finance and insurance didn’t meet expectations, affecting the company’s revenue. 
 You might also like: <a href="https://crypto.news/coinswitch-downsizes-customer-support-amid-coindcx-layoffs/" rel="noopener noreferrer nofollow"> CoinSwitch downsizes customer support amid CoinDCX layoffs </a> 
In May 2017, R3 secured $107 million in funding from over 40 institutions, including major players like Barclays, UBS, and Wells Fargo. At the time, this was one of the largest fundraising events for a blockchain startup. 
Recent data from PitchBook <a href="https://techcrunch.com/2023/09/03/crypto-funding-is-freezing-up/" target="_blank" rel="noopener noreferrer nofollow">shows</a> a 76% decrease in funding for digital asset firms in Q2 2023 compared to the same period last year. As a result, many crypto companies are tightening their budgets. 
Over the past year, several companies have laid off staff. 
 <a href="https://crypto.news/crypto-com-ceo-announces-cutting-20-of-workforce/" rel="noopener noreferrer nofollow">Crypto.com</a>, a crypto exchange, retrenched 50% of its staff, while <a href="https://crypto.news/coindesk-lays-off-over-40-of-editorial-staff-to-ensure-a-financially-sound-business-ahead-of-sale/" rel="noopener noreferrer nofollow">CoinDesk</a>, a major crypto media outlet, laid off 40% of its editorial team. <a href="https://crypto.news/binance-us-ceo-leaves-as-company-lays-off-third-of-its-staff/" rel="noopener noreferrer nofollow">Binance</a> has also seen several top executives resign from various regions due to regulatory pressures. <a href="https://crypto.news/coinswitch-downsizes-customer-support-amid-coindcx-layoffs/" rel="noopener noreferrer nofollow">CoinSwitch</a>, a crypto exchange in India, recently sacked its customer support team. 
This trend is not limited to the crypto and blockchain sector. 
Google recently <a href="https://edition.cnn.com/2023/09/13/tech/google-mass-layoffs-jobs-recruitment/index.html" target="_blank" rel="noopener noreferrer nofollow">announced</a> layoffs in its recruitment division. 
 Read more: <a href="https://crypto.news/coindesk-lays-off-over-40-of-editorial-staff-to-ensure-a-financially-sound-business-ahead-of-sale/" rel="noopener noreferrer nofollow"> CoinDesk lays off over 40% of editorial staff to ‘ensure a financially sound business’ ahead of sale </a>

R3 downsizing, lays off 20% of staff citing economic challenges

crypto.news

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