TaxBit, a cryptocurrency tax software company, has made significant staff reduction, marking the second round of layoffs within a few months. According to The Information, employees were notified about the layoffs on Thursday. Coinciding with the staff reduction, TaxBit’s CEO and co-founder, Austin Woodward, stepped down from his position. Taking his place is Lindsey Argalas, a former Intuit executive and the current Chief Operating Officer of TaxBit, , media reports said.
With these job cuts, TaxBit joins a long list of crypto firms that have resorted to reduction in headcount since April 2022 when the crypto market downturn became more noticeable. In 2023 so far, crypto firms have laid off nearly 5000 employees while the number was around 26,000 in 2022.
TaxBit had achieved unicorn status in August 2021 after successfully raising $130 million in a Series B funding round. The funding was co-led by Insight Partners and IVP, with participation from Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, Madrona Venture Group, and Anthony Pompliano. During the Series B, TaxBit announced its intention to double its team of 80 employees, the same number that has now been let go.
TaxBit’s decision to reduce its workforce, despite its recent funding success, raises questions about the company’s current strategy and market conditions. With the new leadership in place, it remains to be seen how TaxBit will navigate the challenges ahead and whether it will achieve its growth targets with a smaller team.
