These crypto companies have been cutting back on their workforce since the market crash in April

In the wake of the crypto winter, which wiped billions of dollars from the industry after last year’s rally to an all-time high, many firms have significantly reduced headcount in recent months to cut operating costs.

This may not come as a surprise given the impact of the bear market, which forced several major companies, including Three Arrows Capital (3AC), Voyager Digital, and Celsius Network, into bankruptcy.

Crypto Job Cut Trend

While some firms struggled to weather the storm to maintain operations, others had to take drastic measures to keep their businesses afloat.

The massive layoffs started with crypto derivatives exchange BitMEX in April before the catastrophic collapse of TerraUST and its sister token, LUNA, in preparation for the next phase of the business.

BitMEX fired about 25% of its employees at the time, and earlier this month the company fired another 30% of its workforce.

In May, Argentina-based crypto exchange Buenbi made 45% of its employees jobless. Although the firm did not disclose the number of affected employees, CEO Federico Ogue noted that the decision stemmed from Buenbi’s plans to redefine its business strategy due to the global financial crisis.

In the same month, Bitso, one of the leading exchanges in Latin America, laid off 80 of its employees. The firm said the reduction stemmed from the need to restructure its strategy to acquire the necessary skills to push the business forward.

The saddest month for crypto employees

June was one of the saddest months for crypto employees. On June 2, crypto exchange Gemini quietly laid off 10% of its workforce due to the market crisis.

The company, led by the Winklevoss twins Tyler and Kamerun, offered the affected employees a severance package that included health care and a separation package.

In the same month, large crypto exchanges such as Coin baseCryptoCom, Bybit, Bitpanda, Banxa, 2TM, BitOasisHoubi Global and Vauld laid off dozens of employees.

July started with reports of bankrupt lender Celsius Network laying off 150 jobs as part of restructuring plans. Like June, the month saw high cuts from several major companies, including Open sea, BlockchainCom, and CoinFLEX.

The trend slowed in August, when only three large firms reduced the number of employees. Crypto brokerage Genesis fired 260 employees, representing 20% ​​of its workforce; Bitcoin miner Core Scientific cut 10%, and crypto-friendly investment app Robinhood cut as many as 780 jobs, about 23% of its global workforce.

More companies are joining the trend

In September, crypto-focused firm Stakefish cut its staff by 25% following the Ethereum merger. Finance company TrueLayer also joined the trend by laying off 10% of its staff, followed by 2TM for its second round of layoffs.

Last month, Indian crypto exchange WazirX cut 40% of its workforce, with around 40 to 50 employees being fired.

CryptoCom also carried out a second round of layoffs in October, with an additional 200 employees relieved of their duties with the company. Shortly after, crypto trading firm NYDIG joined the trend, shoot about. 30% of employees.

With just four days left in November, three crypto firms – Dapper Labs, BitMEXand Digital Currency Group – have already cut their workforce.