Pump.fun reportedly let go of employees just weeks ahead of their PUMP token grants reaching vesting milestones. One former worker says they lost tokens now worth over a million dollars.
How the layoffs unfolded
Documents and internal communications obtained by Sandmark reveal that Pump.fun cut staff in late March and early April after a phase of rapid growth. Employees had signed agreements in June 2025 granting them allocations of PUMP tokens, with a vesting schedule that released 25% after one year.
In late March, Pump.fun’s head of talent, Lloyd McCarthy, called a group meeting where co-founder Noah Tweedale admitted the company had “grew too quickly,” making it hard to move "fast and rough". Shortly after, contracts were terminated and severance was paid out based on employment length. However, unvested tokens were canceled. One ex-employee lost a stake currently worth seven figures, highlighting the significant financial impact.
Claims of further cuts and token airdrop doubts
More allegations emerged mid-July when a new X account claiming to represent former Pump.fun staff stated that about 40 employees were cut a day before another vesting round. It also claimed Pump.fun never intended to do a public PUMP airdrop, citing company opposition to “giving free money” to users.
Pump.fun hasn’t publicly addressed these revelations. The token trades near $0.002 now, down roughly 77% from its peak in September 2025.
This material is for informational purposes only and does not constitute financial advice.
