Silvergate Capital Crumbles: Hundreds Of Jobs On The Chopping Block Starting Friday

Zinger Key Points
  • 230 employees face separation amid bank liquidation.
  • Company to spend $13.6M on severance and retention packages.

Silvergate Capital Corporation SI on Thursday announced that it will begin a series of substantial headcount reductions starting May 12.

Approximately 230 employees will be affected in this first wave of separations.

Further reductions are expected to take place on June 30, Aug. 30, and Nov. 30 this year or later.

The decision comes as part of the company's ongoing efforts to wind down operations and voluntarily liquidate its wholly-owned subsidiary, Silvergate Bank, in an orderly manner, complying with applicable regulatory processes.

Also Read: Odsy Network Scores $7.5M In Seed Round Backed By Blockchange Ventures, Rubik, DAOs

Following the initial reduction in May, the remaining 80 officers and employees will concentrate on implementing the bank liquidation, preserving the residual value of the company's assets, and addressing pending regulatory and other inquiries and investigations concerning the company and the bank, a press release stated.

Silvergate added that affected employees have been notified, and the company is offering severance packages, retention bonuses, and job placement resources to certain individuals.

The total costs associated with these workforce reductions are estimated at approximately $13.6 million, including $10.7 million for severance and retention bonus payments and $2.8 million for employee benefits and job placement expenses.

Read Next: Former FTX.US President On Crypto Future In Aftermath Of Silvergate, Signature Bank Failures

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsPenny StocksMarketsBank liquidationHeadcount reductionRetention bonusesSeverance packagesSilvergate Capital CorporationVoluntary liquidation
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!