Stablecoin issuer Paxos has reduced its workforce by about 20% despite maintaining a balance sheet of over $500 million.
On June 11, co-founder and CEO Charles "Chad" Cascarilla notified employees of the layoffs via email, explaining that the reduction of 65 staff members would enable the company to "best execute on the massive opportunity ahead in tokenization and stablecoins."
According to a source familiar with the matter, the staff reduction leaves Paxos with an estimated 200-300 employees.
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Paxos is offering a separation package to support those affected, including 13 weeks of severance pay, three months of subsidized health insurance, three months of outplacement support, and a two-year extension to exercise vested options. Moreover, employees on a quarterly incentive program received their second-quarter bonuses, and those on approved parental or medical leave were granted extra benefits.
The staff reduction coincides with Paxos' intensified focus on stablecoin and tokenization initiatives. Just a week earlier, Paxos introduced Lift Dollar (USDL), a regulated yield-bearing stablecoin, through its UAE-based entity Paxos International, overseen by the Financial Services Regulatory Authority (FSRA).
In his email, Cascarilla stated that stablecoins are expected to grow in the coming years and will be central to opening the financial system through tokenization. He also noted that launching and scaling new regulated tokens takes time and emphasized:
We will continue to consolidate focus on our core offering and de-prioritize adjacencies.
Therefore, Paxos' workforce reduction underscores the company's aim of using opportunities expected to have an ambitious future in finance.
In other news, the PYUSD stablecoin issued by PayPal has recently been deployed on the Solana blockchain.
