CoinDesk's website; Gabby Jones/Bloomberg via Getty Images
CoinDesk, the crypto media company that broke the story that led to the fall of crypto exchange FTX and its founder Sam Bankman-Fried, is eliminating positions, according to an internal note from its CEO to staff obtained by Axios.
Why it matters: The expected cuts are part of a broader effort meant to help the company curb costs to facilitate a sale.
- A source told Axios that roughly 40% of CoinDesk's editorial team, or 18 people, are being let go.
- CoinDesk's parent Digital Currency Group (DCG) is trying to finalize a deal to sell CoinDesk to an investor group for $125 million.
Details: The note didn't explain which roles were being eliminated, or how many, but it noted that the cuts would predominantly hit the firm's media team.
- In the note, CoinDesk CEO Kevin Worth said the company's leadership planned to detail more about the cuts in an all-hands meeting at 4pm ET.
- CoinDesk's business includes an award-winning editorial arm, CoinDesk TV, a CoinDesk Indices business and events.
The big picture: DCG has been hit hard by the downturn in the cryptocurrency industry.
- CoinDesk's current management is expected to stay on as part of the deal, Axios' Crystal Kim and Tim Baysinger have reported.
- The deal will see CoinDesk’s parent keeping a stake in the company's media, events, data and indexes business.
Editors's note: Brady Dale, the co-author of this story, is a former employee of CoinDesk. This story has been updated with additional details.