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Are Crypto firms Laying off employees, indicating a Crypto Winter?

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Since the market crash followed the massive sell off of cryptocurrencies, crypto firms started facing difficulties even in general operations

Operating under such tight market conditions is becoming tough for crypto firms that results in stopping operations life withdrawals on the platform and sometimes laying off the workforce. This indicates towards the notion that maybe crypto winter is coming and crypto layoffs are following. This is given that many crypto exchanges have recently announced reducing their employees.

As per calculations in reports, overall these layoff in these companies would result in cutting down of about 1,700 jobs in total. Such companies include both the market leaders and several smaller players also. During this month of June, many companies had reduced their world force including crypto exchange firm Gemini, which announced cutting off about 10% of its working staff. Total employees in the company counted for 1,000 employees out of which 100 meant to get laid off. 

Another prominent crypto exchange and derivative firm, Crypto.com, also announced on 11th June that it had laid off its 260 employees. Later on 14th June, BlockFi also said that it was terminating 170 employees, which equates to about 20% of its total workforce of 850 employees. Leading crypto exchange firm Coinbase also announced the massive number of employees, about 1,100 people from staff, to get laid off from the company.

Other than these leading crypto firms, small players in the space also have not been spared with this effect resulting in reducing the staff. Last month, Argentina based crypto exchange Buenbit said that it had laid off 80 employees that totals for about 45% of its total workforce. While Mexican crypto firm Bitso also laid off its 80 employees on 26th May.

According to various LinkedIn posts and media reports, the layoffs have already started in major crypto firms like Coinbase, Crypto.com and BlockFi. The top officials of these companies have said current market conditions to be the reason for this wave of downsizing the employees. Co-founders of Gemini Crypto exchange stated in a blog post that all the affected employees from this recent termination were notified about it on 2nd June.

CEO and Co-founder of Coinbase, Brian Armstrong in a blog post on 14th June while announcing layoffs stated that it appears that recession is soon to come after an economic boom that lasted for more than ten years. He said that this time, the recession could result in another crypto winter and it could stay for quite a long period. 

Steve Anderrson

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