In a sea of tech layoffs, Crypto companies are also feeling the heat this far into January 2023. At least 14 crypto firms have announced layoffs, with over 3,000 employees jobless as the industry peeks out of crypto winter. Some of these companies include Coinbase, Gemini, Digital Currency Group, ConsenSys, and Blockchain.com. Read below to learn why Crypto jobs may be at risk even as prices flare up.
Why Are Crypto Companies Laying Off Employees?
January has been a bloody month for crypto employees globally. A lot of Crypto companies announced layoffs in the month. Reports suggest that over 14 companies have laid off at least ~3,000 employees. Though there may not be a specific reason, the overall market conditions are to blame. At the start of the month, crypto exchange Huobi announced a 20% cut in its labor force, as digital asset prices plummeted.
Prime Trust, the crypto infrastructure provider, is the latest company to follow suit in announcing a labor force cut. It has announced that at least a third of its employee base is shutting down. According to the company’s LinkedIn profile, this would mean that around 100 people lose their jobs, which counts the total number of employees at around 312.
Over the last few days, other marketplaces and platforms such as Matrixport have also announced layoffs. Matrixport is to lay off 30 employees. Furthermore, Gemini, a top crypto exchange platform is also stated to have laid off ~100 staff members. On January 10, Coinbase reduced its employee count further by around 950 employees. Additionally, Crypto.com laid off over 500 employees.
The layoff trend isn’t specifically isolated to Crypto, though. In the past few months, top tech companies have seen a global layoff period across the board. Just in the month of January, around 48,000 employees of top tech firms like Google, Amazon, Microsoft, and Salesforce were let go.
As the crypto bear market rages on, there is still a glimmer of hope. Leading investment firm Pantera Capital claims “there has never been a better time to start a blockchain company.” They say that the bear market provides a smoother runway and lesser distractions.