In the aftermath of the crypto winter, which erased billions of dollars from the industry after last year’s rally to an all-time high, many firms have significantly reduced their headcounts over the past few months to cut operational costs.
This may not come as a surprise due to the impact of the bear market, which forced several big companies, including Three Arrows Capital (3AC), Voyager Digital, and Celsius Network, into bankruptcy.
The Crypto Job Cut Trend
While some firms struggled to weather the storm to maintain their operations, others had to take drastic measures to keep their businesses afloat.
The massive layoffs started with the crypto derivatives exchange BitMEX in April before the catastrophic collapse of TerraUST and its sister token, LUNA, in preparation for the next phase of business.
BitMEX sacked about 25% of its employees at the time, and earlier this month, the company fired another 30% of its workforce.
In May, the Argentina-based crypto exchange Buenbi rendered 45% of its staff jobless. Although the firm did not disclose the number of employees affected, CEO Federico Ogue noted that the decision stemmed from Buenbi’s plans to redefine its business strategy due to the global financial crisis.
That same month, Bitso, one of the leading exchanges in Latin America, laid off 80 of its employees. The firm said the reduction stemmed from the need to restructure its strategy to acquire the necessary skills to push its business forward.
The Saddest Month for Crypto Employees
June was one of the saddest months for crypto employees. On June 2, crypto exchange Gemini silently laid off 10% of staff from its workforce due to the market crisis.
The company, led by the Winklevoss twins Tyler and Cameroon, offered the affected employees a severance package that included healthcare and a separation package.
That same month, major crypto exchanges such as Coinbase, CryptoCom, Bybit, Bitpanda, Banxa, 2TM, BitOasis, Houbi Global, and Vauld laid off dozens of employees.
July started with reports of bankrupt crypto lender Celsius Network laying off 150 jobs as part of its restructuring plans. Like June, the month experienced high job cuts from several major companies, including OpenSea, BlockchainCom, and CoinFLEX.
The trend slowed down in August, as only three major firms slashed their headcounts. Crypto brokerage Genesis fired 260 employees, representing 20% of its workforce; Bitcoin miner Core Scientific reduced 10%, and crypto-friendly investment app Robinhood cut as high as 780 jobs, about 23% of its global employees.
More Firms Join the Trend
In September, crypto-focused firm Stakefish reduced its employees by 25% after the Ethereum Merge. Financial services company TrueLayer also joined the trend by laying off 10% of its staff, followed by 2TM for its second round of job slashes.
Last month, Indian crypto exchange WazirX cut 40% of its headcount, with about 40 to 50 employees fired.
CryptoCom also conducted a second round of job cuts in October, with an additional 200 staff relieved of their duties for the company. Shortly after, crypto trading firm NYDIG joined the trend, firing approximately 30% of its staff.
With just four days into November, three crypto firms – Dapper Labs, BitMEX, and Digital Currency Group – have already slashed their workforce.
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