Digital Asset Industry Layoffs Increase in Bitcoin Bear Market
The year 2023, or the number of crypto jobs that have been cut in the last two months?
A report on Thursday (Feb. 23) said that since January, over 2,000 jobs have been lost in the crypto sector as companies continue to cut back.
The crypto industry has had a rough start to the new year, even though prices have gone up a little since the crypto winter of 2022, which was a real gut punch.
Even so, companies are still trying to cut costs and get rid of waste. This is because the industry’s growth-at-all-costs mentality is turning out to come with high payroll costs that can hurt balance sheets in tough times.
Also, if everyone else is doing it, why not let some teams go?
In January, U.S. companies cut 102,943 jobs, 41% of which were in the tech sector.
Higher interest rates and the risk of a recession are making many industries cut back, but the tech industry is getting most of the attention.
The U.S.-based cryptocurrency exchange Coinbase Global Inc. cut its staff by 20% in January. This was the third time the company has done this since June 2022. Now, it looks like the company may be laying off workers for the fourth time, since Coinbase said more layoffs could be on the way.
In the last eight weeks, many other crypto actors have also announced that they are cutting jobs.
As part of a restructuring effort, blockchain analytics company Elliptic is letting go of 10% of its staff, and crypto data and exchange platform Messari has let go of 15% of its staff.
According to the report, blockchain gaming company Immutable has cut 11% of its staff, Polygon Labs is getting rid of 1 out of every 5 jobs, market maker GSR just went through a second round of layoffs, NFT marketplace Magic Eden has cut 22 jobs, and Protocol Labs is cutting about 21% of its staff.
Bittrex laid off approximately 80 staff, and Chainalysis let off 5% of its 900 employees. Blockchain.com is letting go of 28% of its employees, the cryptocurrency exchange Luno is losing 35%, Matrixport is losing 10%, ConsenSys is losing 11%, Gemini is losing 10%, and Genesis Global Trading is losing 30%. Fidelity-backed OSL wants to slash costs by a third, Osprey Funds has less than 10 staff after cutting off over a dozen, and crypto bank. Silvergate Capital is slashing 200 positions, NFT marketplace SuperRare 30%, and Huobi 20%.
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