Crypto Bear Market Sees Digital Asset Industry Layoffs Pile Up
The number 2023 – new year or the number of crypto jobs cut these past two months?
As a Bloomberg report Thursday (Feb. 23) noted, since January, the crypto sector has seen over 2,000 jobs lost as companies in the digital asset sector continue to retrench.
It’s certainly been a choppy start to the new year for the crypto industry, even as cryptocurrency prices have rebounded slightly from 2022’s gut-punch of a crypto winter.
That hasn’t stopped companies from looking to cut costs and trim the fat, as the industry’s growth at all costs mindset is turning out to come with significant payroll costs that can drag down balance sheets in challenging times.
Plus, why not let some teams go when everyone else seems to be doing it?
U.S.-based companies cut 102,943 jobs in January, PYMNTS wrote previously, with 41% of them coming from the tech sector.
Higher interest rates and recession risks are spurring a range of sectors to retrench, with the tech industry making most of the headlines.
Read More: Growing Scrutiny, Layoffs Mark Next Leg of Post-FTX Crypto Contagion
U.S.-based cryptocurrency exchange Coinbase Global Inc. reduced its headcount by 20% in January, the third time the cryptocurrency exchange reduced its staffing levels since June 2022, as reported by PYMNTS. It now appears the company may be shedding workers for a fourth time, as Coinbase indicated more layoffs could be coming.
Per the Bloomberg report, and as tracked in part previously by PYMNTS, many other crypto actors have also announced their own rounds of job cuts in the past eight weeks.
Blockchain analytics firm Elliptic is laying off 10% of its staff, while crypto data and exchange platform Messari has cut 15% of its workforce as part of a restructuring effort.
Blockchain gaming firm Immutable has axed 11%, Polygon Labs is shedding 1 in every 5 employees, market maker GSR recently underwent a second round of staff cuts, NFT marketplace Magic Eden is 22 roles lighter, and Protocol Labs is downsizing by about 21%, all per the report.
Additionally, crypto exchange Bittrex has let over 80 people go, while crypto data intelligence platform Chainalysis has sunset a little under 5% of its 900 employees. Blockchain.com is letting go 28% of its workforce, crypto exchange Luno is losing 35%, Matrixport 10%, ConsenSys 11%, Gemini 10%, Genesis Global Trading 30%, Fidelity-backed OSL hasn’t given a number but plans to cut costs by a third, Osprey funds is down to fewer than 10 employees after laying off over a dozen, crypto bank Silvergate capital is cutting 200 jobs, NFT marketplace SuperRare 30%, and exchange Huobi is downsizing to the tune of 20%.