The crypto industry is going through a rough patch due to the ongoing crypto winter, forcing companies to shut down operations and stop hiring. Crypto markets are struggling to grow after numerous “black swan” events including the Luna Terra crash, increased Fed rates coupled with regulatory uncertainty and investors pulling out of the cryptocurrency market.
While longstanding cryptocurrency exchanges like CoinSpot (You can also read about ours CoinSpot review here) tried to avoid downsizing, some other exchanges are laying off their staff, jeopardizing the safety and quality of their services. The number of companies announcing major layoffs is overwhelming. Below are the top cryptocurrency exchanges that have made significant layoffs.
Twins
Noting that turbulent market conditions are likely to continue for some time, Gemini was one of the first crypto giants to declare that it would lay off 10% of its workforce. Moreover, it is predicted that the same trend will continue.
coin base
One of the major crypto exchanges, Coinbase, announced a hiring freeze as part of its effort to control costs amid unpredictable market conditions. The company laid off 1,100 employees, or 18% of its workforce. The layoffs came a day after major US bitcoin lending firm Celsius Network halted withdrawals and transfers, causing bitcoin to plummet by as much as 50%.
Krypto.com
In June 2022, due to the market downturn, Crypto.com said it was laying off 260 employees, or 5% of its workforce. CEO Kris Marszalek tweeted that the company will continue to analyze how it can optimize its resources to become a big name in the next bull run.
Swyftx
As many local software companies aim to cut costs and lengthen their runaways, Australian crypto exchanges Swyftx has announced plans to lay off 74 employees, or 21% of the workforce. This is the latest in a wave of layoffs at local tech startups. The company’s co-CEOs Alex Harper and Ryan Parsons cited a shaky economic climate as justification for the layoffs.
blockfi
BlockFi, a decentralized financial institution that enables crypto lending and borrowing, reduced its headcount by around 20% and laid off over 600 people. According to the company, market factors that have negatively impacted its growth rate and a rigorous review of its strategic priorities drove the decision.
Bitpanda
Bitpanda, a bitcoin trading platform based in Vienna, has laid off more than 270 employees – about 30% of its workforce. The company blamed economic constraints in an announcement titled “The Way Forward,” noting that its goal is to be well capitalized to navigate the storm and come out of it financially healthy. Their biggest mistake was being aggressive and expanding rapidly during the peak of the bull market.
Bitso
The respected Latin American exchange Bitso laid off around 80 employees in May 2022. According to Bitso, hiring decisions are based on their long-term business strategy and are designed to support customers and the company’s vision. As a rationale for the cuts, the company cited the need to reconsider the human resources it needs to move faster in the crypto market.
Robin Hood
Fintech firm Robinhood laid off 9% of its full-time employees. After laying off about 300 employees, Robinhood had about 3,100 employees when it was last laid off in late April. The 23% workforce reduction would affect approximately 713 people, leaving the company with 2,400 employees. Robinhood chief executive Vlad Tenev said the company has been over-hiring during the pandemic, resulting in duplicate roles and job functions and “more shifts and complexity than optimal.”
bybit
Bybit, a Singapore-based cryptocurrency exchange, has now joined the long list of companies that have laid off some of their employees. Crypto investors are shocked by the revelation that the company is laying off a staggering 30% of its 2,000-strong team. The company was looking for ways to eliminate redundant work and create leaner, more agile teams to increase effectiveness.
Blockchain.com
Blockchain.com also announced a significant downsizing in the wake of the current economic crisis. The company reportedly laid off over 25% of its employees. According to Ian Allison, one of the reporters, Blockchain.com suffered financial losses due to bear market conditions that lasted for several months. He also revealed that the 3AC issue cost the company $270 million.
Vault
Bitcoin exchange Vault has reduced its staff due to the collapse in cryptocurrency values, tax concerns and a sharp drop in volume. Vault He did not disclose the exact number of employees affected by the layoffs. However, according to LinkedIn, the company has laid off about 29 to 30 employees, or about 30% of its workforce.
2TM
100 jobs were lost due to 15% job cuts at 2TM Group, the parent company of Mercado Bitcoin, a Brazilian cryptocurrency exchange. The company laid off approximately 12% of its workforce in June 2022, citing changes in the state of the global economy. The company also blamed the current state of affairs on the lack of a legal framework for digital assets in Brazil.
Writes /TradingKumpa/
Reports /TrainViral/
