Moonvember kicks off with widespread layoffs across crypto
The crypto and tech industry has seen a number of cuts this week against a backdrop of difficult market conditions, but on a positive note, there are some bucking the trend.
Crypto companies, including crypto exchanges, venture capital firms and blockchain developers, have been forced to cut staff to stay nimble amid the bear market. However, some have done the opposite and opened offices in new locations and markets.
It comes a few weeks after several high-level executives, such as OpenSea’s former CFO, Kraken’s co-founder Jesse Powell and Ripple Labs’ director of engineering have all made headlines for either leaving or stepping down from their roles in the space.
Stripe is cutting around 1,000 employees
Patrick Collison, CEO of payments processor Stripe, said in a Nov. 3 memo that 14% of the firm’s workforce — about 1,000 employees — would be laid off, citing “inflation, energy costs, higher interest rates, reduced investment budgets and tighter startup funding” as reasons to the cuts.
Collison added that it was “overpriced for the world we’re in,” and said Stripe was “too optimistic” about near-term e-commerce growth, underestimating the impact of a major market downturn and operating costs growing too quickly.
The memo says the changes in headcount will be uneven across Stripe, and it’s unclear which departments will be affected or how it will affect the crypto side of the business. The payments startup released a crypto payout product in April for Twitter creators.
Dapper Labs is cutting 22% of its workforce
Flow blockchain developer Dapper Labs made the decision on Nov. 2 to cut 22% of its workforce, affecting approximately 130 employees, according to a memo from founder and CEO Roham Gharegozlou.
Gharegozlou said the “macroeconomic environment” and the company’s growth from 100 to over 600 employees in less than two years prevented the firm from being “as aligned, nimble and community-driven as we need to be.”
He said Dapper Labs “streamlined and focused” its product strategy around a “more sustainable cost structure” and looked at the skills it needed for the future when deciding who to lay off.
Digital Currency Group lays off 10% of staff: Report
Web3 conglomerate and venture capital firm Digital Currency Group (DCG) let go of about 10% of its workforce, according to a Nov. 1 Bloomberg report that saw 10 employees leave the company, bringing the total number of employees to 66.
The cuts were reportedly part of a restructuring with Mark Murphy, DCG’s chief executive, also promoted to president, a spokesperson said DCG “made a number of internal changes” to position the company “for the next phase of growth” which included “streamlining”. ” of departments.
Cointelegraph contacted DCG to confirm the report, but did not receive a response.
Galaxy Digital is reportedly looking at a 20% reduction in its workforce
Galaxy Digital, the crypto firm founded by Michael Novogratz, is also looking at a potential cut of about 20% — as many as 75 jobs — according to a Nov. 1 Bloomberg report that cited sources familiar with the matter.
The company neither confirmed nor denied the rumors, with a spokesperson saying only that the firm is “evaluating optimal team structure and strategy.” Yahoo Finance data shows that shares of Galaxy Digital are down around 76% year-to-date, along with a similar decline in crypto prices.
Galaxy Digital was contacted by Cointelegraph to confirm the report, but did not receive a response.
BitMEX cuts staff amid strategic pivot
Crypto exchange BitMEX is also making moves across its staff as part of a strategy to pivot away from spot trading and custody services and instead focus on crypto derivatives.
A BitMEX spokesperson told Cointelegraph on Nov. 1 that a previous report citing 30% of staff that would be cut was “inaccurate and too high,” but with the focus back on derivatives trading, an “unintended consequence” was that “we had to make changes to our workforce.”
Coinbase CPO quits to take a breather
The now-former chief product officer of crypto exchange Coinbase, Surojit Chatterjee, revealed in a LinkedIn post on Nov. 3 that he had left his position at the company, saying “it’s time to step down and take a breather.”
After almost 3 incredible years as CPO @myntbase, I take a breath and descend. Thanks to the entire CB team – I look forward to continuing to serve @brian_armstrong and the management team as advisers. I’ve shared some reflections here: https://t.co/y5qM9VaJ36
— surchatt.eth (@surojit) 2 November 2022
Chatterjee’s tenure at Coinbase lasted three years, but said he would continue to help the company by serving as an advisor to CEO Brian Armstrong. He said the personal hiatus will involve more family time after his father was diagnosed with Alzheimer’s disease and his mother died unexpectedly.
An Oct. 28 Securities and Exchange Commission (SEC) filing by Coinbase says with Chatterjee’s departure, the product, engineering and design teams “will be reorganized within a product group structure where the leaders of such groups will assume responsibility for Coinbase’s product offerings.”
OKX opens in the Bahamas — plans to hire 100 locals
Meanwhile, crypto exchange OKX appears to be looking to hire and said on November 3 that it plans to fill 100 vacancies.
Related: Loyalty to increase the crypto unit by another 25% with 100 new hires
The open positions will only be available to local Bahamian talent as OKX is registered as a digital asset business in the Bahamas, forming a new subsidiary to act as the company’s regional hub and opening an office in the archipelago’s capital, Nassau.
Paxos adds 130 heads in Singapore
At least 130 new Singapore-based jobs will be added over the next three years at blockchain infrastructure firm Paxos, according to a Nov. 2 Bloomberg report, after the local entity received a license to offer digital token payment services.
Paxos co-founder Rich Teo said up to 180 could be brought in over the three years, which would take the number of employees to about 200, a nine-fold increase from the current team of 20 in the city-state.
In October, $4.5 trillion asset management firm Fidelity Investments told Cointelegraph that it is set to hire an additional 100 people to bolster the firm’s growing digital asset division.
Fidelity said in a statement to Cointelegraph that the firm was in a “unique position” to offer exposure to the “emerging” digital asset sector – as the reason for pushing for more talent to bolster its Digital Assets arm.
