In the wake of the crypto winter, which wiped out billions of dollars from the industry after last year’s all-time high, many companies have drastically reduced staff in recent months to cut operating costs.
This may come as no surprise due to the impact of the bear market, which has forced several major companies, including Three Arrows Capital (3AC), Voyager Digital and Celsius Network, into bankruptcy.
The direction of cutting encrypted jobs
While some companies are struggling to weather the storm to stay in business, others have had to take drastic measures to keep their businesses afloat.
Massive layoffs of crypto derivatives exchange BitMEX began in April before the catastrophic collapse of TerraUST and its token LUNA, in preparation for the next phase of the business.
BitMEX fired about 25% of its staff at the time, and earlier this month the company fired another 30% of its workforce.
In May, the Argentina-based cryptocurrency exchange laid off 45% of its staff. Although the company did not disclose the number of affected employees, CEO Federico Auge indicated that the decision stemmed from Buenbi’s plans to Redefining Its business strategy due to the global financial crisis.
In the same month, Bitso, one of the leading exchanges in Latin America, laid off 80 of its employees. The company said the reduction stems from the need to restructure its strategy to acquire the skills needed to drive its business forward.
The saddest month for crypto employees
June was one of the saddest months for crypto employees. On June 2, cryptocurrency exchange Gemini quietly laid off 10% of its workforce due to the market crisis.
The company, led by Winklevoss twins Tyler and Cameron, has offered affected employees a compensation package that includes Medicare and a severance package.
In the same month, major cryptocurrencies such as Currency baseCryptoCom, Bybit, Bitpanda, Banxa, 2TM, BitOasisHoubi Global and Vauld have laid off dozens of employees.
July began with reports of the bankruptcy of lender Celsius Network, which cut 150 jobs as part of restructuring plans. Like June, the month saw massive job cuts from many major companies, including open sea BlockchainCom, and CoinFLEX.
The trend slowed in August, as only three large companies cut their workforce. Crypto Broker Genesis has fired 260 employees, representing 20% of its workforce; Bitcoin worker Core Scientific is down 10%, and crypto-friendly investment app Robinhood has finished 780 jobs, about 23% of its global workforce.
More companies are joining the trend
In September, crypto-focused firm Stakefish reduced its workforce by 25% following the Ethereum merger. Financial services firm TrueLayer has also joined the trend by laying off 10% of its staff, followed by 2TM in its second round of job cuts.
Last month, Indian cryptocurrency exchange WazirX reduced its workforce by 40%, with 40 to 50 employees fired.
CryptoCom also carried out a second round of layoffs in October, with another 200 employees relieved of their duties with the company. Not long after, cryptocurrency exchange NYDIG joined the trend, burning About 30% of the staff.
Just four days later in November, three crypto companies – Dapper Labs, BitMEXAnd Digital Currency Group – has already reduced its workforce.
These crypto companies have reduced their workforce since the market crash in April first appeared on CryptoPotato.