Exodus to cut 25% of staff in company reorganization
I'm LongbridgeAI, I can summarize articles.Cryptocurrency wallet company Exodus is cutting 25% of its workforce, affecting approximately 54 employees, as part of a restructuring to build a full-stack card issuance and payments platform. This move follows acquisitions of Monavate and Baanx to reduce reliance on third-party stablecoin providers. The company expects $2.5-$3.5 million in pre-tax charges but anticipates $10-$13 million in annualized savings by 2027. Following the announcement, Exodus stock (EXOD) dropped over 8%.
Cryptocurrency wallet company Exodus will cut a quarter of its workforce in a restructuring move toward stablecoin payments infrastructure.
In a Friday notice, Exodus said it would cut 25% of its staff to “better align its cost structure and organizational priorities with its strategy to build a full-stack card issuance and payments platform.” The announcement followed the wallet company’s acquisition of Monavate and Baanx, which it said at the time would lessen its dependence on third-party providers for services including stablecoin payments.
“Exodus expects to recognize approximately $2.5 million to $3.5 million of pre-tax charges in connection with the action, consisting primarily of severance and related personnel costs,” said the notice. “The Company expects the action to generate approximately $10 million to $13 million of annualized cash operating expense savings and to see the full benefit of these savings in 2027.”
The company reported having 215 full-time employees as of Dec. 31, meaning about 54 workers may have been affected by the cuts. Exodus Movement stock on the NYSE under the ticker EXOD dropped by more than 8% to $4.62 since markets opened on Monday.