By George Ward
As the crypto bear market continues and the industry has massive meltdowns that threaten its outlook, crypto enterprises are again cutting costs. As a result, a new round of layoffs is being implemented at several organizations, including Coinbase Global, Genesis, and Blockchain.com.
Layoffs Continue In January
Thus far, more than 1,600 positions have been eliminated in the first two weeks of 2023 between the companies mentioned above and the Huobi exchange, the Ethereum development company ConsenSys, and the cryptocurrency bank Silvergate Capital.
Coinbase’s chief executive officer Brian Armstrong admitted in a message to staff that he could have trimmed more last year and that the industry could experience more contagion.
Some of the most prominent players on the market, like BlockFi, FTX, and Celsius Network, went out of business within a year, and others had to lower their goals to stay in business. Moreover, the new round of layoffs came as a potential recession in the US loomed, which could lead to job cuts in all fields.
Technology and finance giants like Goldman Sachs Group, BlackRock, and Amazon also laid off many people due to economic uncertainties and rising interest rates.
More Job Cuts May Likely Happen
Approximately 950 employees, or 20% of Coinbase’s total workforce, were informed of their layoffs on January 10. The majority of its Japanese businesses and several ongoing initiatives are being shut down.
In June of last year, Coinbase laid off 18% of its workforce or around 1,100 people. In November, another 60 people lost their jobs.
According to a source with knowledge of the matter, Blockchain.com will sack around 29% of its personnel or roughly 110 workers. It had already laid off about 150 people the year before.
According to the source, the company will have 280 workers after the layoffs. However, multiple reports hint that the Blockchain tech startup ConsenSys plans to lay off over 100 staff.
Recent reports indicate that cryptocurrency exchange Huobi intends to lay off 20% of its workforce. About 1,100 people work for the company. In January, Silvergate Capital Corporation announced that it would be laying off about 200 people, or 40% of its workforce.
On January 5, Genesis Global Trading Inc., a cryptocurrency brokerage, terminated the employment of more than 60 people, or roughly 30% of the workforce. In August last year, the company laid off 20% of its workforce, and its CEO, Michael Moro, resigned.