Alexander Savenkov Mara, a prominent African cryptocurrency exchange, has recently undergone a substantial reduction in its workforce, with an estimated 85% of employees being let go. Additionally, the remaining staff members have experienced salary cuts. While the company has framed these actions as a means to eliminate redundant positions, former employees have pointed to Mara’s soaring marketing expenses as a contributing factor behind the decision to downsize.
Streamlining Operations and Job Cuts
Mara, a pan-African crypto exchange, joins the growing list of startups streamlining their operations by reducing their workforce. According to a report by CryptokenTop.com News, numerous crypto and blockchain firms based in Africa have also resorted to significant employee layoffs, citing the challenging conditions of the crypto winter as the main reason for the cutbacks.
Mara, which successfully secured $23 million in seed equity funding in May 2022, states that the layoffs are part of a strategic move to eliminate “redundant roles and transition the company into its next phase.” A company spokesperson emphasized that despite these changes, Mara’s future plans remain intact. The crypto exchange conveyed the following message:
“Last year, Mara raised $23M to support our vision of fostering wealth creation for Africans. We launched MARA Wallet, which has already garnered over four million verified users. Additionally, we established the Mara Foundation, a nonprofit organization dedicated to accelerating blockchain capacity-building across Africa. We have plans that extend beyond being a mere crypto exchange and will be making announcements soon. Our mission remains unchanged – to inspire a movement that facilitates the emergence of a 21st-century Africa through universal access to blockchain technology.”
Despite Mara’s portrayal of the downsizing as a restructuring initiative, former employees, as cited in a Technext report, have revealed that the company’s excessive workforce and mounting marketing expenses played a role in the decision to scale back. According to the report, Mara embarked on an extensive public relations campaign across Africa, sponsoring crypto events, a sporting occasion, and even the Ghanaian football team.
While these efforts succeeded in increasing the number of verified users, Mara’s rising operational costs reportedly prompted initial warnings about potential layoffs. The collapse of the FTX crypto exchange also impacted Mara, along with other African crypto entities, as stated in the report.
Stay up-to-date with African news by registering your email here to receive a weekly newsletter:
African Crypto Newsletter
Sign up
We would like to hear your thoughts on this story. Please share your opinions in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about crypto exchange layoffs
What is Mara?
Mara is a pan-African cryptocurrency exchange that facilitates the trading of various digital assets.
Why has Mara laid off a significant number of employees?
Mara has implemented layoffs to eliminate redundant roles and streamline its operations as it moves into the next phase of its development.
Have the remaining employees at Mara also experienced salary cuts?
Yes, the remaining employees at Mara have had their salaries reduced as part of the company’s cost-cutting measures.
What reasons have been cited for Mara’s decision to downsize?
Former employees have indicated that Mara’s bloated workforce and escalating marketing costs were contributing factors behind the decision to scale back.
How has Mara been affected by the collapse of crypto exchange FTX?
Like other African crypto entities, Mara has been impacted by the collapse of FTX, which has added to the challenges faced by the company.
What are Mara’s future plans beyond being a crypto exchange?
Mara has expressed plans that extend beyond being a crypto exchange. While specifics have not been announced yet, the company aims to inspire a movement that enables the emergence of a 21st-century Africa through universal access to blockchain technology.
How many verified users does Mara currently have?
Mara’s MARA Wallet has already surpassed four million verified users, showcasing its growing user base and market presence.
Yes, interested individuals can register their email to receive a weekly African Crypto Newsletter, providing them with regular updates on the latest news in the African crypto space.
5 comments
Wow, Mara crypto exchange laying off so many staff members! Heard they had to cut salaries too. Tough times for African startups. Hope they can bounce back!
Mara’s layoffs and reduced salaries show the challenges faced by crypto exchanges. African startups feeling the heat of the crypto winter. Let’s see how they adapt and grow!
Interesting to see Mara claiming the layoffs are to remove redundant roles. But rumors say their huge marketing costs played a role too. Will this move help them in the long run?
Mara, the Pan-African exchange, taking steps to streamline operations. But was the bloated workforce and marketing expenses really necessary? Tough decisions, but necessary for survival.
Mara’s vision goes beyond being just a crypto exchange. Hope their plans beyond layoffs and salary cuts will bring positive change. Blockchain technology has the potential to transform Africa!