Pump.fun cuts 40 employees before PUMP token vesting

Pump.fun cut more than 40 employees in two rounds of layoffs before their PUMP token allocations were scheduled to vest, according to a Sandmark investigation.

In a recorded meeting reviewed by Sandmark, co-founder Noah Tweedale told staff the company had expanded too quickly, making it harder to move swiftly on projects.

The Solana-based meme coin launchpad terminated contracts in early April with severance of one week per month worked, then cut another round in mid-July. At least one former employee lost a token allocation now worth seven figures. The company has generated $1.3 billion in cumulative revenue and posts roughly $1 million in daily profit, per Sandmark.

PUMP traded at about $0.002 as of press time, down 77 percent from its all-time high set last September. The token has fallen 60 percent since launch despite more than $315 million in buybacks, weighed down by rapid unlocks and unmet airdrop expectations.

A newly created X account under the handle "ex pump employee" claimed it had been fired by Baton Corp., the development firm behind Pump.fun, after more than a year with the company. The account owner said he was among 40 employees laid off one day before their PUMP token grants were due to vest. The user also claimed there were never any plans for a PUMP airdrop, adding that the company did not believe in "giving free money" to users.

Pump.fun also faces regulatory pressure. The company recently missed a deadline to file accounting reports with UK authorities and was fined as a result, adding compliance costs to its operational challenges.

The layoffs raise questions about compensation structures that tie token allocations to employment status — a common practice in crypto that becomes contentious when dismissals occur shortly before unlock events. For affected staff, the forfeited allocations represent a significant financial loss given the platform's profitability.

The broader Solana meme coin market depends on Pump.fun as its primary launchpad. The restructuring could affect platform development and user support, while the timing of dismissals may have lasting reputational implications for talent acquisition.

This article is for informational purposes only and does not constitute investment advice.