and cut staff

Two more major crypto platforms have announced hundreds of layoffs due to the effects of the ongoing crypto winter. The exchange announced the dismissal of approximately 20% of its employees, the platform will reduce about 28% of the team. RBC Crypto writes about this. cited economic headwinds caused by the downturn in the cryptocurrency market and the collapse of FTX as the reason for the layoffs. The cuts the exchange made last year allowed it to weather the macro downturn, but the recent collapse of the Bankman-Fried exchange has dented confidence in the industry significantly. This forced the platform, which it claims adheres to “prudent financial management”, to decide on new cuts, said in a report.

In 2022, carried out two rounds of layoffs: 260 people were fired in June and about 2,000 more in October (about 40% of the team). Thus, from the remaining approximately 3.2 thousand employees, a new wave of layoffs may affect about 640 people.

Crypto platform announced the dismissal of 28% of the team (about 110 employees), CoinDesk reported on January 12. Of the approximately 390 people in the company, 280 remain employed.

“The crypto ecosystem is facing major challenges and is correcting course from last year’s troubles. <…> In order to better balance supply with demand, we have made the difficult decision to cut operating costs and headcount,” a spokesperson explained via email.

At the beginning of 2021, the team consisted of 160 people, but by the middle of last year grew to more than 500. In July, the company suffered a loss of $ 270 million on loans that it provided to the bankrupt hedge fund Three Arrows Capital, and was forced to fire about 150 employees.

In the first 10 days that have passed since the beginning of the year, crypto companies, including such large industry participants as the Coinbase, Huobi exchanges and the SuperRare NFT marketplace, have already announced the reduction of more than 1.5 thousand employees.

The leader of the industry, the Binance crypto exchange, stands apart. Its head, Changpeng Zhao, announced plans to increase the number of ecosystem staff by 15-30% in the coming year. In 2022, according to him, the exchange team has grown from 3,000 to 8,000 people.


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