R3, Prominent Blockchain Company, Lays Off 20% of Workforce
R3, a prominent blockchain company in the finance industry, has reportedly laid off one-fifth of its workforce. The company eliminated positions across different functions and did so to preserve cash during an industry downturn, Bloomberg reported Thursday (Sept. 14).
Reasons for the Layoffs
- R3 did not immediately reply to PYMNTS’ request for comment.
- The company provided a statement to Bloomberg saying that the layoffs were made after careful consideration of the macroeconomic environment and commercial landscape.
- R3 had previously announced that it was streamlining operations internally and reducing headcount across various functions.
- The company did not specify the number of jobs being cut in its earlier announcement.
Focus on Core Areas
R3 also mentioned in its announcement that it was aligning its resources behind core focus areas. These include continuing to invest in digital currency solutions and accelerating its work with financial firms on digital assets and tokenization solutions.
Challenges Faced by R3
- Some projects, such as those in insurance and trade finance, have not progressed as expected, resulting in a loss of revenue.
- The slow adoption of blockchain technology among financial institutions has further contributed to the need for restructuring within the company.
- The decline in the cryptocurrency sector has also affected blockchain startups, with global investment in digital-asset firms plummeting by 76% in the second quarter compared to the previous year.
Long Process of Blockchain Adoption
Turning the promise of blockchain into the reality of blockchain is a long, slow process, particularly among companies in regulated financial markets, according to R3 Senior Advisor Charley Cooper. However, he mentioned that it is happening as clients learn about the technology.
