Major Shake-Up At CoinDesk: 16% Workforce Reduction Ahead Of $125M Deal

Zinger Key Points
  • CoinDesk is reportedly cutting 45% of its editorial team, 16% of overall staff.
  • The cuts precede a potential $125 million deal led by Tally Capital.

Crypto media outlet Coindesk is reportedly cutting nearly half its editorial team, a move that comes as its parent organization, Digital Currency Group, eyes the inclusion of strategic investors.

In an internal announcement, as revealed by a memo obtained by The Block, the company communicated its plans for a comprehensive meeting at 4:00 pm ET on Monday to address the staff reductions.

CoinDesk's CEO, Kevin Worth, expressed in the memo, "The purpose of the meeting is to inform everyone that today several roles, predominantly in our media team, were impacted by a reduction in force."

He further conveyed the gravity of the situation, stating, "This is an incredibly difficult message to send to everyone over email, and yet I also wanted everyone at CoinDesk to know as soon as possible what is happening today."

Worth also emphasized that this move was essential "to ensure a financially sound business moving forward and to set us on the path to close the deal to sell CoinDesk Inc."

An insider has revealed that the company will be parting ways with 20 members, which equates to a significant 45% of its editorial department.

This also translates to a 16% overall reduction in the company's workforce, as per another source.

In July, The Wall Street Journal disclosed that CoinDesk was close to finalizing a $125 million deal with a group led by crypto advocate Matthew Roszak of Tally Capital.

This arrangement would see DCG retaining a share in CoinDesk, a company known for its ventures in events, data, and indexes.

Also Read: Bald Token Creator Cashes Out $12M In ETH After Price Collapse

It's noteworthy that DCG acquired CoinDesk for a sum of $500,000 back in 2016.

In a recent communication to its shareholders, DCG's Q2 investor letter highlighted CoinDesk's initiative to onboard new institutional and strategic investors.

The letter stated, "With positive momentum and feedback from the market, we have held discussions with numerous interested parties over the last few months and these processes are progressing."

The company also reported a robust financial quarter, attributing it to the "Consensus 2023 festival in April," which generated $15 million in revenue.

Benzinga has reached out to Coindesk for comment.

Read Next: Bitcoin ETFs Poised To Capture Significant Market Share Within 3 Years: Report

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Posted In: CryptocurrencyNewsMarketsCoinDeskConsensus 2023Digital Currency GroupInstitutional InvestorsKevin WorthLayoffs
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