Paris-based cryptocurrency hardware wallet manufacturer Ledger is reducing its staff by 12%, citing macroeconomic headwinds and a prolonged bear market as reasons for its decision.

The French company raised $109 earlier in 2023 million in a funding round to reach a valuation of around $1.4 billion.

• Ledger Chairman and CEO Paul Gauthier announced the news in a letter sent to employees, which was published on the company’s blog on Thursday, Oct. 5, 2023.
• According to Gauthier, Ledger saw an influx of customers following the collapse of major players in the industry, including FTX, Voyager, and Silicon Valley Bank (SVB).
• The company further raised $109 million in a Series C extension fundraising round in March 2023, bringing Ledger’s valuation to around $1.4 billion.
• However, current market conditions have hindered the hardware wallet manufacturer from generating revenue, causing the company to resort to job cuts to sustain business operations.
• According to Gauthier’s letter:

“Macroeconomic headwinds are limiting our ability to generate revenue, and in response to the current market conditions and business realities, we must reduce roles across the global business. Sadly, this means we are making the difficult decision to reduce 12% of the roles at Ledger.”

• Ledger, which launched a crypto trading network technology in June called Tradelink for institutional clients, faced criticism from its online users in May after releasing a controversial update that sparked security fears.
• Meanwhile, Ledger becomes the latest crypto firm to trim down its workforce amid a prolonged crypto winter. Blockchain analytics company Chainalysis recently carried out a second round of layoffs after dismissing close to 5% of its workforce in February.
• Other companies in the industry who have taken similar action in 2023 include Dapper Labs, Messari, Crypto.com, Huobi, and, more recently, CoinSwitch and CoinDCX.