Parent Company to Filecoin, Protocol Labs Slashes 21% of its Work Force

• Protocol Labs is laying off 21% of its staff, or 89 people, the company announced today in a blog post.
• Filecoin provides a decentralized data storage service powered by its filecoin (FIL) token.

Protocol Labs Lays Off 21% of Staff

Protocol Labs, the company behind the decentralized file storage network Filecoin, is laying off 89 people, or 21% of its headcount. The layoffs come as the company navigates ongoing economic headwinds and “unforeseeable” industry events.

In a blog post, CEO Juan Benet said that the company has had to focus its headcount “against the most impactful and business-critical efforts.” He also said that the layoffs were “not a reflection of the quality of work of those who are leaving.”

Protocol Labs is not the only crypto company that has announced layoffs in recent months. In January, crypto lender Genesis Global Trading laid off 30% of its staff, and crypto bank Silvergate Capital cut 200 jobs.

The layoffs in the crypto industry are a sign of the broader economic downturn. High inflation, high-interest rates, and low investment have made it difficult for many companies to raise capital. The crypto industry is particularly vulnerable to these headwinds, as it is still a relatively young and unproven industry.

It is unclear how the layoffs at Protocol Labs will affect the future of Filecoin. However, the company has said that it is committed to the project and that it will continue to invest in its development.