After a tumultuous 2022 resulting in significant losses, crypto companies have continued their layoff efforts into the new year. This has meant that many with aspirations of working within this industry have had to watch their dreams and positions vanish due to the companies’ widespread layoffs. The data indicates that 14 crypto businesses let go of an astounding 2,900 employees just last month alone.
Successive Layoffs Continue in Cryptocurrency Companies
Prime Trust was the most recent business to undergo staff layoffs that began last year. By the opening month of 2023, Prime Trust had reduced its employees by a third. Evidently, this trend has been escalating more rapidly in recent weeks; for example, Matrixport cut 30 positions, and Gemini axed up to 100 roles, according to Bloomberg news reports.
In January, Coinbase exchange reigned supreme as the crypto company that recruited the most personnel. Despite laying off 950 employees in the past year, they still managed to come out on top – Luno terminated 500 people from their workforce, Crypto.com 330 and Huobi 320.
In January, Digital Currency Group (DCG) and its subsidiaries took drastic action by cutting a total of 485 employees due to recent legal issues. The most affected crypto company was the Luno exchange, with over 200 layoffs, closely followed by 63 from crypto lending platform Genesis and HQ Digital’s wealth management firm slashing 26 staff members.
Silvergate bank and Blockchain.com exchange have both been forced to lay off 200 and 110 staff members, respectively, while ConsenSys’s Matemask has let go of 96 workers. The NFT sector is also experiencing its own layoffs, with SuperRare dismissing 20 employees due to financial pressures. This wave of terminations signifies a significant blow for the overall market, particularly given that these job losses occurred solely during January alone – an indication that even Crypto’s bull run may not be enough to save certain exchanges from downsizing their teams permanently.
These Layoff Are Not Just Limited To The Cryptocurrency Industry
2022 has not been a prosperous year for crypto companies, as macroeconomic conditions have negatively affected both traditional and digital markets. In January alone, four tech giants—Google, Amazon, Microsoft, and Salesforce—were forced to lay off 48,000 employees due to geopolitical tensions and other political strategies. The effects of these layoffs are far-reaching; from Wall Street all the way down Main Street, businesses were impacted in some fashion or another by this turmoil.
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