Major Crypto Firms Eliminate Employees: Layoff Rate Increases

• Crypto layoffs have been continuously affecting employers of Web3 space.
• Major crypto firms eliminated a substantial percentage of their employers.
• The layoff of January alone constitutes 41% of the previous year’s layoff.

Reportedly, crypto layoffs have been increasingly affecting employers of Web3 space, from “quiet layoffs” to “wildcat firms.” According to the crypto analytic platform CoinGecko, almost 2,806 crypto employers lost their job.

Many leading crypto companies including Genesis, Crypto.com, Coinbase, Huobi, Gemini, Wire, DCG, Blockchain.com, etc. have cut short their employees, making crypto layoffs in 2023 reach more than 41% of the total layoffs in 2022.

For instance, reports suggest that Genesis let off 30% of the company’s employees and applied for a bankruptcy filing. Crypto.com fired one-fifth of the total employees while Coinbase eliminated almost 950 employees, constituting 20% of the total strength.

Denise Carlin, the Head of People at MPCH Labs, told that “quiet layoffs” still exist. He added that “people are trying to quietly lay off”, referring to two firms that terminated a major percentage of their staff.

Interestingly, the founder of the Web3 firm Up Top Talent, Dan Eskow added that he had seen firms that silently lay off their staffs, citing the example of the crypto market maker and ecosystem partner GSR.

Referring to the laid-off Meta, Amazon, and Google staff applying for crypto jobs, Eskow told:

We see plenty of engineers coming from the FAANG layoffs that are definitely interested in those roles. But the reality is, it’s not a good time to make a pivot from web2 to web3. The crypto-native devs are going to take priority.

Many factors including market volatility, bankruptcies, legal constraints, crypto regulations, technological difficulties, and many more constitute the cause of the increasing unemployment rate.