Cryptocurrency wallet developer Exodus Movement announced a reduction of about one-quarter of its global staff, cutting around 77 positions as part of a major strategic shift toward stablecoin payments and card services. The restructuring plan received board approval on July 16 and was revealed in a securities filing on Friday.
The company expects the layoffs to generate pre-tax charges between $2.5 million and $3.5 million, largely related to severance. Annual cost savings are projected at $10 million to $13 million, with full benefits realized in 2027. Affected employees will be offered severance packages, continued benefits, and transition assistance.
key Shift From Trading to Payment Solutions
Exodus is pivoting from its traditional focus on crypto trading, which has subjected the company’s revenue to market volatility. First-quarter revenue dropped 37% year-over-year to $22.7 million, while net losses expanded to $32.1 million. The layoffs align costs with a plan to build an integrated card issuance and payments platform, propelled by Exodus’s acquisitions of payments provider Monavate and digital banking firm Baanx.
In a statement, Co-Founder and CEO JP Richardson said the company aims to establish "a full-stack payments platform that delivers meaningful, everyday utility." This new direction targets creating alternatives to cyclical trading income through card issuance, stablecoin settlement, and enterprise payment solutions.
Despite weakening market conditions, brokerage Benchmark maintained a Buy rating on Exodus stock but lowered the price target from $23 to $12. Analyst Mark Palmer described the workforce reduction as operational execution of the new strategy and noted investors may undervalue the potential of the payments infrastructure additions from Monavate and Baanx. Nevertheless, Exodus shares have declined approximately 85% in the past twelve months, currently trading near $4.85.
