Crypto downturn persists with over 2,000 jobs lost by 2023
(Bloomberg) — The digital asset industry has lost more than 2,000 jobs in the first two months of 2023, as companies continued to shrink even as crypto prices staged a partial recovery.
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US cryptocurrency exchange Coinbase Global Inc. this week indicated that more layoffs may be on the way, after cutting 20% of its workforce in January. Other trading venues including Crypto.com, Huobi Global, Gemini and Luno also announced cutbacks in the past two months. The exchange’s revenues depend on retail trade, which has been slow to pick up after a wave of mistakes and scandals tore through the sector last year.
Layoffs have also been widespread among other types of crypto businesses. Chainalysis, a company that specializes in tracking digital asset transactions and counts Singapore’s GIC among its investors, announced job cuts in early February. Brevan Howard-backed researcher Messari has trimmed its workforce by 15%, CoinDesk has reported.
Here are some of the crypto job cuts announced or reported so far in 2023:
Dapper Labs
In a letter shared by Roham Gharegozlou, founder and CEO of Dapper Labs, the company behind the National Basketball Association’s Top Shot NFTs said it is laying off 20% of its workforce as it goes through a restructuring to improve “focus and efficiency.”
Elliptical
Blockchain analytics firm Elliptic is laying off 20 employees or roughly 10% of its workforce, DL News has reported.
Messari
The crypto data and exchange platform has cut 15% of its workforce as part of a restructuring, according to CoinDesk.
Immutable
The Australia-based blockchain gaming firm has made layoffs affecting 11% of its workforce, according to The Sydney Morning Herald.
Polygon Labs
The main operator of the Polygon blockchain announced that it has let go of about 100 employees, or 20% of its workforce, as part of a consolidation of business units.
GSR
One of the oldest crypto market makers eliminated about 20 positions in January, the second round of layoffs at the firm.
Magical Eden
The non-fungible token marketplace announced that it has cut 22 roles as part of a “company-wide restructuring.”
Protocol Labs
The company behind the decentralized file storage network Filecoin announced in a blog post that it will cut 89 roles across multiple teams, or 21% of its staff.
Bittrex
Crypto exchange Bittrex has laid off more than 80 people, as reported by CoinDesk.
Chain analysis
The company known for its crypto transaction tracking services said it made layoffs affecting less than 5% of its 900 employees.
Matrix port
The digital asset lender is losing 10% of its 300 employees.
Luna
The crypto exchange owned by Digital Currency Group announced that it is reducing around 35% of its workforce.
Bitcoin Suisse AG
The digital asset investment firm said it has shed some positions, but declined to give an exact figure. A spokesperson said it was “significantly below” the industry average of around 30% of headcount. The company has also streamlined management: Chief Risk Officer Sven Ramspott also has the role of Chief Financial Officer, duties held by Philipp Vonmoos, who is leaving the company after five years.
Blockchain.com
Blockchain.com is letting go of 28% of its workforce, or about 110 employees. It cut around 150 roles last year. After the redundancies, the company’s employees will be 280, up from 160 at the start of 2021.
Coin base
On January 10, Coinbase announced a reduction of around 950 employees, or 20% of its workforce. It is closing most of its operations in Japan and shutting down several projects. Last June, Coinbase laid off 18% of its workforce, equivalent to roughly 1,100 employees, and it eliminated another 60 in November.
ConsenSys
Ethereum software company ConsenSys confirmed that it is eliminating 96 positions, representing 11% of the crypto firm’s total workforce.
Crypto.com
Crypto.com said it was laying off about 20% of its global workforce. It comes on top of layoffs in the middle of last year. Crypto.com declined to provide the specific number of jobs eliminated in the latest round.
The twins
Gemini Trust Co. eliminated another 10% of the workforce. The firm is still under pressure from a months-long crypto slump.
Genesis
Brokerage Genesis Global Trading Inc. laid off more than 60 employees, or about 30% of its workforce, on Jan. 5. Last August, the company eliminated 20% of its workforce.
OSL
The digital asset platform backed by Fidelity International cuts costs by about a third, including a “reduction in headcount,” according to Hugh Madden, CEO of OSL’s parent company BC Technology Group.
Osprey Funds
Digital asset manager Osprey Funds has laid off 15 employees and is currently operating with fewer than 10 employees, CryptoDaily reported.
Prime Trust
Crypto services company Prime Trust laid off about a third of its staff late last month, mostly in communications and compliance, CoinDesk reported.
Silvergate capital
Crypto-friendly bank Silvergate Capital Corp. said in January that it is reducing its workforce by around 200 people.
SuperRare
Defunct token marketplace SuperRare cut staff by roughly 30% in January, according to a tweet from CEO John Crain.
Huobi
Crypto exchange Huobi said it plans to cut 20% of its workforce, according to a statement in January. The company has approximately 1,100 employees.
(Updates with latest layoff announcement from Dapper Labs.)
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