Fired! Over 3,500 specialists have been affected by massive cuts in the cryptocurrency market, but it looks like the worst is yet to come.
The cryptocurrency bear market has struck a significant blow to the sector’s labor market. As of July 2, at least 3,500 specialists from around the world in the fields of cryptocurrency marketing, human resources, technical support, and programming were laid off.
The largest reductions were recorded at the Coinbase crypto exchange, where the founder of the company, Brian Armstrong, announced the dismissal of 18% of the staff (over 1,000 people). It is not yet clear whether the cuts are due to market conditions or a scandal within the company.
However, other exchanges are not far behind in terms of layoffs. For example, the Bitpanda exchange also announced changes, laying off 730 employees. In third place is the ByBit exchange, which, according to media reports, left 20% to 30% of its staff (up to 600 employees) without work due to unsatisfactory growth in operations.
Summary
– Crypto exchange Coinbase laid off more than 1,000 people (18% of its staff) to “maintain stability during the economic downturn.”
– Cryptocurrency exchange Bybit fired from 20% to 30% of the staff (up to 600 people).
– Crypto exchange Huobi is preparing to lay off about 300 people.
– The Gemini exchange laid off 10% of the staff (~100 people) due to the “cryptocurrency winter”.
– Coinbase-sponsored marketplaces Vauld and Rain also announced cuts but did not specify the extent.
– Cryptocurrency lender BlockFi laid off 20% of its employees (170 employees), while the Crypto.com staff reduced by 5% (260 employees).
– The Argentinean cryptocurrency exchange Buenbit laid off 45% of its staff (~80 people).
– The Mexican exchange Bitso terminated employment relationships with 80 employees.
– European crypto exchange Bitpanda also announced changes, laying off 730 employees.
– The Australian cryptocurrency exchange Banxa fired 30% (about 70 people), citing another “crypto winter.”
– The BitMEX marketplace laid off about 75 employees.
– Hong Kong-based crypto exchange OSL has cut to 60 employees.
Fired: Wave Increasing
At the same time, the wave of cuts seems to be only gaining momentum. The head of hedge fund Pantera Capital, Dan Morehead, said earlier that in the next couple of months, the crypto market is waiting for even more bankruptcies like Three Arrows Capital due to the monetary policy of the US Federal Reserve.
Meanwhile, more and more American top managers are sounding the alarm about an impending recession. Elon Musk, the founder of Tesla and SpaceX, said the crisis was already here.
Goldman Sachs analysts raised the probability of a recession in the next twelve months to 30%, and JPMorgan Chase CEO Jamie Dimon even urged people to prepare for the “economic hurricane” that has already loomed on the horizon.
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