Stablecoin issuer Paxos has made headlines with its recent decision to downsize its workforce by 20%, despite holding a substantial balance sheet of over $500 million. The company’s co-founder and CEO, Charles “Chad” Cascarilla, informed employees of the layoffs in an email on June 11, citing the need to focus on opportunities in tokenization and stablecoins.
The reduction of 65 staff members leaves Paxos with an estimated 200-300 employees, with the company offering a generous separation package to support those affected. This package includes severance pay, subsidized health insurance, outplacement support, and an extension to exercise vested options.
The layoffs come as Paxos intensifies its efforts in the stablecoin and tokenization space. Just a week prior, the company introduced Lift Dollar (USDL), a regulated yield-bearing stablecoin, through its UAE-based entity Paxos International. Cascarilla emphasized the importance of stablecoins in the future of finance and the company’s commitment to focusing on core offerings.
The workforce reduction reflects Paxos’ strategic shift towards opportunities in tokenization and stablecoins, highlighting the company’s dedication to staying at the forefront of innovation in the industry. In related news, the PYUSD stablecoin issued by PayPal has recently been deployed on the Solana blockchain, further showcasing the growing importance of stablecoins in the digital economy.
