- Cake Group announces more layoffs amid financial struggles
- Crypto winter slashes company’s revenue by 6x in 2023
- Recent founders’ feud compounds challenges for Singapore-based crypto platform
Bittersweet Restructuring
Singapore-based crypto platform Cake Group is preparing for another round of layoffs and company-wide restructuring.
CEO Julian Hosp confirmed the job cuts in a recent YouTube video, following a company town hall meeting on August 16.
This move echoes the firm’s November 2023 decision to trim its headcount by 30%, though the exact number of affected staff remains undisclosed.
From Sugar High to Crypto Crash
Cake Group’s financial rollercoaster ride reflects the volatile crypto market. After a staggering 400x increase in net income from 2021 to 2022, the company’s fortunes soured during the crypto winter.
Revenue plummeted by over 6x in 2023, hitting $30.1 million. Despite a net profit of $30.5 million, thanks to a mysterious $135 million debt forgiveness, the company recorded an alarming $26.4 million operating loss—a tenfold jump from the previous year.
Founders’ Feud Fallout
The layoffs come in the wake of a resolved conflict between co-founders Julian Hosp and U-Zyn Chua. Following disagreements over the previous job cuts, Chua filed a winding-up application in December 2023, which was dismissed in April 2024.
Hosp subsequently bought out Chua’s shares but claims the legal battle significantly damaged the company’s reputation and customer base.
To read the original article: https://www.techinasia.com/cake-group-staff-face-job-cuts-founders-feud-ends
