SUMMARY

• CoinDesk laid off 45% of its editorial workforce.
• The layoffs affected 20 individuals, equating to a 16% reduction in the overall workforce.
• The layoffs were a required step to ensure a financially sound business moving forward and to set CoinDesk on the path to close a deal to sell the company.

Popular crypto media company CoinDesk has made a significant move by laying off 45% of its editorial workforce as its parent firm, Digital Currency Group (DCG), seeks to onboard strategic investors. As reported by The Block, CoinDesk revealed the internal layoffs on Monday, scheduling an all-hands meeting to address the situation.

In an email penned by CoinDesk CEO Kevin Worth, he stated, "This was a required step to ensure a financially sound business moving forward and to set us on the path to close the deal to sell CoinDesk Inc." 

Sources familiar with the matter disclosed that the media entity will be letting go of 20 individuals, equating to a 16% reduction in the overall workforce. This move comes in light of a report in late July from The Wall Street Journal indicating a potential $125 million deal with a consortium led by crypto investor Matthew Roszak of Tally Capital. DCG is expected to retain a stake in CoinDesk as part of this agreement.

DCG, which acquired CoinDesk for $500,000 in 2016, has enlisted financial advisors to attract new institutional and strategic investors in tandem with DCG's Q2 investor letter. The letter indicated ongoing discussions with various interested parties, while highlighting CoinDesk's robust performance driven by $15 million in revenue from the Consensus 2023 festival held in April.

DCG is also seeking fresh investments for its crypto exchange, Luno, as its subsidiary Genesis Capital continues to recover from the repercussions of last year's credit crisis, having filed for Chapter 11 bankruptcy protection in January.