Crypto Bear Market Sees Digital Asset Industry Layoffs Pile Up
The number 2023 – new year or the number of crypto jobs cut in the last two months?
Like Bloomberg report Thursday (February 23) noted that since January, the crypto sector has seen over 2,000 jobs lost as companies in the digital asset sector continue to downsize.
It’s certainly been a choppy start to the new year for the crypto industry, even if cryptocurrency prices have regressed a bit from 2022’s stomach power. crypto winter.
That hasn’t stopped companies from looking to cut costs and trim the fat, as the industry’s growth-at-any-cost mindset turns out to come with significant labor costs that can drag down the balance sheet in challenging times.
Plus, why not let some teams go when everyone Does anyone else seem to?
US-based companies cut 102,943 jobs in January, PYMNTS wrote previously, with 41% of them from the technology sector.
Higher interest rates and recession risks are spurring a number of sectors to pull back, with the technology industry making most of the headlines.
Read more: Increasing Scrutiny, Layoffs Mark Next Stage of Post-FTX Crypto Contagion
US-based cryptocurrency exchange Coinbase Global Inc. reduced number of employees by 20% in January, the third time the cryptocurrency exchange reduced staffing levels since June 2022, as reported by PYMNTS. It now appears that the company may lay off workers for the fourth time, which Coin base indicated that more layoffs may be coming.
Per the Bloomberg report, which is partially tracked earlier of PYMNTS, many other crypto players have also announced their own rounds of cuts over 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.
Blockchain gaming firm Immutable has shed 11%, Polygon Labs is shedding 1 in 5 employees, market maker GSR recently underwent a second round of layoffs, NFT marketplace Magic Eden is 22 roles lighter, and Protocol Labs is cutting roughly 21%, all according to the report.
Additionally, crypto exchange Bittrex has let go over 80 people, while crypto data intelligence platform Chainalysis has shed just under 5% of its 900 employees. Blockchain.com sheds 28% of workforce, crypto exchange Luno loses 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 are 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 reducing to 20%.
PYMNTS data: Why consumers are trying digital wallets
A PYMNTS study, “New Payments Options: Why Consumers Are Trying Digital Wallets” finds that 52% of US consumers tried a new payment method in 2022, with many choosing to try digital wallets for the first time.
