Crypto payments infrastructure company MoonPay has announced the layoff of 10% of its workforce due to high operational costs and below-expected operating margins. The decision, disclosed by co-founder and CEO Ivan Soto-Wright in an email to employees, is aimed at improving the company’s cost structure and strengthening its foundation.
Restructuring for Efficiency
In the email obtained by The Block, Soto-Wright outlined a series of role eliminations, relocations, and structural changes impacting around 10% of MoonPay’s staff. Based on LinkedIn records, this is estimated to affect approximately 30 employees, given MoonPay’s current headcount of around 300. A MoonPay spokesperson confirmed the email’s contents but did not specify the exact number of employees affected.
“Today we are implementing a series of role eliminations, role relocations, and structural changes which impact about 10% of our staff,” wrote Soto-Wright. “These changes will allow us to improve our cost structure and strengthen our foundation.”
Financial Stability Amid Layoffs
Despite the layoffs, Soto-Wright emphasized that MoonPay remains financially sound with years of runway ahead. He noted, however, that the company’s operating margins are not meeting expectations. “Although we are cash-flow positive, our cost structure is too high due to over-investment in some areas and geographies. Ultimately, this is on me as CEO and it would be irresponsible to our team and our shareholders not to address this.”
Affected employees are expected to receive separation packages, and Soto-Wright highlighted the importance of ensuring they continue to have opportunities as shareholders in MoonPay. “It is personally important to me that all those impacted will continue to have the opportunity to be shareholders in the company and are recognized in our future success,” he said.
Continued Growth and Innovation
The layoffs come as MoonPay has been actively launching new products and services. Recently, the company introduced a new web3 tool platform for brands entering the crypto space, integrated PayPal to facilitate easier crypto purchases and sales for U.S. users, and partnered with BitPay to streamline crypto transactions.
Backed by high-profile investors such as Paradigm and Coatue, MoonPay was valued at $3.4 billion following a $555 million Series A financing round in 2021. Despite the recent layoffs, the company continues to focus on scaling its team smartly and maintaining its position in the evolving crypto market.
