CoinCover Laying off 50% of Staff, Mostly Sales Team: Sources  

Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

About Author

Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk and Bitcoin Magazine.

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Last updated:

October 21, 2024 08:27 EDT

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CoinCover, a company specializing in cryptocurrency protection services, has recently laid off 50% of its staff, with most of the redundancies affecting its sales team.

This information came from a message sent by a member of the company’s staff, stating, “They’ve fired the whole sales team and 50% of the staff. Relying on resellers now. Not a good start to the week for me!”

The sudden job cuts have sparked concern among employees and raise broader questions about the challenges faced by tech and crypto firms in an evolving market landscape.

In a statement Coincover said:

“CoinCover has today announced to employees that we are making redundancies. The decision has not been taken lightly and is necessary to ensure that the business is built upon a sustainable platform for long-term growth.

We deeply appreciate the contributions made by all those who are affected and understand the impact that this will have on them. We will ensure that they are treated with care and respect throughout the process and will endeavour to support all of our colleagues throughout the period and as they seek their next roles.

In making these changes now we are ensuring a sustainable future for our business so that we can continue to protect investors’ assets long into the future.“

What Does CoinCover Do?

CoinCover provides security solutions designed to protect individuals and businesses from the risks associated with holding cryptocurrency. Their key offering is a crypto protection platform that helps users safeguard their digital assets against theft, loss, and other vulnerabilities.

The company’s services are targeted at both retail and institutional customers, offering protection for crypto wallets, private keys, and even disaster recovery services.

Adjusting Organization for New Market Demands

The layoffs at Coincover are part of a larger pattern across the tech and cryptocurrency sectors. In 2023 and 2024, many tech companies—both large and small—have been reducing their workforces as a result of several key challenges.

In September, Matter Labs announced a reduction of its workforce by 16% as part of a restructuring effort on September 3.