TaxBit Layoffs 40% Of Workforce After $130M Valuation Boost

Crypto tax software company TaxBit has recently laid off 80 employees, which accounts for almost 40% of its workforce. The information came to light after TaxBit announced the completion of Series B financing of over US$130 million on August 2021, making it a unicorn company with a valuation exceeding US$1.3 billion.

The Utah-based company provides tax and compliance software services to cryptocurrency holders. The company had previously reduced staff by approximately 15% last year.

The crypto industry has been hit with an economic downturn, and U.S. regulators have increasingly pursued lawsuits against crypto exchanges and other startups for alleged securities violations. The US Securities and Exchange Commission (SEC) accused two major cryptocurrency platforms of violating regulations.

On Monday, the SEC charged Binance and its founder with 13 offenses related to operating a “web of deception.” The following day, Coinbase was accused of operating as an “unregistered broker, exchange and clearing agency,” putting customers at risk.

On Thursday, the same day that CEO and co-founder Austin Woodward stepped down, TaxBit informed employees about the layoffs. The spokesperson for the company stated that the decision was made to focus on expanding in the U.K. and EU. Lindsey Argalas, a former executive from Intuit, has replaced Woodward as TaxBit’s chief operating officer.

While the news of the layoffs is unfortunate, TaxBit remains a significant player in the cryptocurrency tax and compliance software market. As the market continues to evolve, it will be interesting to see how TaxBit adapts to these changes and positions itself for future growth.

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