Pump.fun conducts layoffs before PUMP token unlock, some employees miss out on seven-figure token allocations

Odaily News: Pump.fun conducted significant layoffs two months before employee token unlocks, causing at least one former employee to miss out on PUMP token allocations worth seven figures at current prices.

Reports indicate that the layoffs occurred in early April, while affected employees were originally scheduled to begin receiving token unlocks in June. Employees had signed token agreements in June 2025, with one-quarter of the token allocation set to unlock after one year. In a recording of an internal meeting, Pump.fun co-founder Noah Tweedale cited the company's "overly rapid expansion" as the reason for the layoffs.

Former employees revealed that a second round of layoffs took place in mid-July, bringing the total number of staff cut over the past two months to more than 40. One former employee claimed to have been let go the day before their token unlock, though Sandmark was unable to independently verify this assertion.

Pump.fun currently operates under the UK entity Baton Corporation Ltd. After the UK's Financial Conduct Authority (FCA) warned that it might be providing financial services without authorization, the company has restricted access for UK users since December 2024, but it remains on the regulator's warning list.

Additionally, in 2024, Pump.fun experienced an incident in which an employee stole and transferred approximately $2 million in funds, with the individual involved subsequently sentenced to six years in prison. According to UK Companies House data, the company's latest annual report remains overdue for filing. (Sandmark)