Erik Voorhees, founder and CEO of crypto exchange ShapeShift, announced that his company has reduced the size of its team by a third, laying off 37 employees. "Crypto, like the moon we strive toward, is a harsh mistress," Voorhees wrote, adding that "none of it surprises those who have been through these cycles. But even with that experience, navigating these tumultuous seas is a continual lesson in humility."
According to Voorhees, ShapeShift diversified its product line too early and in too many verticals, resulting in financial, legal, and time costs. "Product diversification is fine, but it has to be at the right time. We did it too soon," he wrote. As a result, ShapeShift's core exchange business suffered. However, Voorhees notes that he is hopeful for the new year, "while this new one starts upon some painful reorganization, we’re encouraged and hopeful for 2019," he concludes in his post.
ShapeShift's decision follows similar layoff announcements from Huobi, Steemit, and ConsenSys.