The crypto industry is going through a difficult time due to the ongoing crypto winter, forcing businesses to halt operations and stop hiring. After numerous “black swan” events, including the Luna Terra crash, increased Fed interest rates combined with regulatory uncertainty, and investors withdrawing from the cryptocurrency market, crypto markets are struggling to thrive.
While long-standing cryptocurrency exchanges like CoinSpot (you can also read about our CoinSpot Review here) sought to avoid cutting down their workforce, quite a few other exchanges are laying off their employees, compromising the security and quality of their services. The number of businesses announcing major layoffs is overgrowing. Below are the top cryptocurrency exchanges that have made significant staff layoffs.
Citing that the turbulent market conditions are expected to last for some time, Gemini was one of the first crypto giants to declare it was laying off 10% of its workforce. Additionally, it is predicted that the same trend will continue.
One of the major crypto exchanges, Coinbase, announced a hiring freeze as part of its efforts to control costs in the face of unpredictable market conditions. The firm eliminated 1,100 staff or 18% of its workforce. The layoffs occurred a day after the major US bitcoin lending company Celsius Network stopped withdrawals and transfers, causing Bitcoin to plummet by as much as 50%.
Coinbase laid off around 1,100 employees. Image: Crypto Corner
Due to the market decline, Crypto.com stated in June 2022 that it was firing 260 people or 5% of its workforce. CEO Kris Marszalek tweeted that the firm would continue to analyse how to optimise its resources to become the big names during the next bull run.
As many local software businesses aim to slash costs and lengthen their runaways, Australian crypto exchange Swyftx has announced it is laying off 74 employees, or 21% of its workforce. This is the latest in a wave of layoffs at local tech startups. Co-CEOs Alex Harper and Ryan Parsons of the company claimed a shaky economic climate as justification for the layoffs.
BlockFi, a decentralised financial institution enabling crypto lending and borrowing, cut its headcount by around 20%, terminating over 600 people. According to the business, market factors that have negatively impacted their growth rate and a rigorous examination of their strategic priorities drove the decision.
Bitpanda, a bitcoin trading platform with offices in Vienna, let go of more than 270 workers—roughly 30% of its workforce. The company blamed economic constraints in an announcement titled “The Way Forward,” noting that its goal was to be well-capitalised to navigate the storm and get out of it financially healthy. Their most significant error was aggressive hiring and rapid expansion during the bull market’s peak.
Reputable Latin American exchange Bitso sacked roughly 80 workers in May 2022. According to Bitso, the decisions concerning hiring new employees are based on its long-term business strategy and intended to assist clients and the corporate vision. The company cited the need to reconsider the staff capabilities it requires to advance more quickly in the crypto market as justification for the reductions.
The fintech business Robinhood laid off 9% of its full-time employees. After firing roughly 300 people, Robinhood had about 3,100 employees at its most recent layoffs in late April. The 23% personnel cut would affect about 713 individuals, leaving the corporation with 2,400 workers. Vlad Tenev, Robinhood’s chief executive, said that the firm had overhired in the pandemic, leading to duplicate roles and job functions and “more layers and complexity than are optimal”.
Robinhood CEO Vlad Tenev. Image: Brendan Mcdermid/Reuters
Bybit, a cryptocurrency exchange based in Singapore, has now joined the lengthy list of businesses that have let go of some of their staff. Crypto investors are shocked by the revelation that the company is laying off a staggering 30% of its 2,000-person team. The firm was looking for ways to eliminate redundant tasks and create leaner, more agile teams to increase its effectiveness.
Blockchain.com also disclosed a significant reduction in staff under the current economic crisis. According to reports, the corporation fired over 25% of its employees. According to Ian Allison, one of the reporters, Blockchain.com experienced financial losses due to bear market conditions that persisted for several months. He also disclosed that the 3AC problem had cost the corporation 270 million US dollars.
Bitcoin exchange Vauld has reduced its employees due to the collapse in cryptocurrency values, concerns about taxes, and a sharp decline in volume. Vauld did not disclose the precise number of employees affected by the layoffs. However, according to LinkedIn, the company has laid off around 29–30 workers or about 30% of its staff.
100 positions were lost due to the 15% employment reduction at 2TM Group, the parent business of Mercado Bitcoin, a Brazilian cryptocurrency exchange. The corporation let go of about 12% of its workforce in June 2022, citing changes in the state of the world economy. The corporation also blamed the current state of affairs on Brazil’s absence of a legislative framework for digital assets.