Pump.fun Lays Off Employees Weeks Before PUMP Token Vesting

Pump.fun's rapid expansion came at a cost for its employees, according to an investigation by Sandmark. The company laid off workers in late March and early April, just weeks before their PUMP token grants were set to vest.

The first 25% of the tokens would have vested after one year, but affected employees reportedly lost their allocations, with at least one former worker forfeiting tokens now worth seven figures. Pump.fun head of talent Lloyd McCarthy called a group meeting in late March, where co-founder Noah Tweedale said the company had 'grew too quickly,' limiting its ability to operate.

The layoffs were followed by another round of cuts in mid-July, with a former employee alleging that 40 workers were dismissed one day before their PUMP grants were set to vest. This claim has not been independently verified.