CoinDesk is reportedly planning layoffs in its editorial department ahead of the sale of a stake in the publication to investors, according to media reports.
TechCrunch wrote that CoinDesk CEO Kevin Worth sent an internal email warning that “several roles, predominantly in our media team, were impacted by a reduction in force.” Other sources estimated the staff reduction at 16% or 45%. A 45% cut would represent about 20 people, according to reports.
According to the leaked email, an “all hands” meeting will be held at CoinDesk at 4:00 pm ET on Aug. 14. CoinDesk has not responded to a Cointelegraph’s request for more information at the time of writing. Reports of the sale of CoinDesk have been circulating all year.
You know, I just realized that Coindesk is for sale. pic.twitter.com/QqmBPOClpu— Charles Hoskinson (@IOHK_Charles) January 19, 2023
On July 20, The Wall Street Journal reported on a purported deal to sell a share in the crypto media outlet. Crypto investors Matthew Roszak of Tally Capital and Peter Vessenes of Capital6 were reportedly leading the effort to acquire a $125-million stake in the company.
CoinDesk is currently wholly owned by the Digital Currency Group (DCG), headed by Barry Silbert, which is also the parent company of Grayscale Investments, Genesis, Foundry and Luno.
DCG has been impacted by the crypto winter in a number of ways. Genesis filed for bankruptcy in January, after being on shaky financial ground for months following the bankruptcy of Three Arrows Capital, which had a reported debt to DCG of $1.1 billion. The Gemini exchange later sued DCG to recover money tied up in Genesis’ Earn program.
Also in January, the United States Securities and Exchange Commission filed suit against Genesis and Gemini for unregistered securities sales. According to a report in early August, DCG is also the object of a probe by the New York State Department of Financial Services and separately by New York Attorney General Letitia James.