Crypto Layoffs is Coming, for More Than 1,700 Layoffs So Far in June Alone

Several cryptocurrency exchanges have announced layoffs. According to Insider’s calculation, the total number of layoffs will reach about 1700. The following are the major cryptocurrency companies that have announced layoffs so far in June.

• Gemini said on June 2 that it would cut about 10% of its employees. The company has an estimated 1000 employees, which means 100 will be laid off.
• Crypto.com announced on June 11 that it would terminate 5% of its workforce, or 260 employees.
• On June 14, BlockFi said it was cutting 20 percent of its 850 employees, or 170.
• Coinbase said on the same day that it was cutting 18 percent of its employees, or 1100.

 

Smaller exchanges have not been spared.

• Argentina’s Buenbit said on May 23 that it has cut about 45% of its employees. According to CoinDesk’s calculation, it is estimated that there are 80 employees.
• Bitso in Mexico said on May 26 that it had laid off 80 employees.
• According to many media reports and LinkedIn posts, Crypto.com, BlockFi, and Coinbase have begun to lay off workers. Gemini’s co-founder said in a blog post that the affected employees were notified on June 2. Buenbit and Bitso said they had begun to lay off staff.

Company Leaders Blamed the Layoffs on Market Conditions

“It seems that we are entering an economic recession after more than 10 years of economic prosperity. The economic recession may lead to another crypto winter and may last for a long time,” Brian Armstrong, the CEO and co-founder of coinbase, said in a blog post on June 14, in which he announced layoffs.

In their blog post on June 14, BlockFi cofounders Zac Prince and Flori Marquez announced that they would slow down personnel growth. They wrote: “our primary goal is to achieve profitability, so that we can have our own destiny in navigating the global recession that many people expect to prolong.”

The Crypto winter, or the millions of dollars decline in the price of cryptocurrency, occurred after the industry hit a record high at the end of 2021. The global cryptocurrency market peaked at $3trillion in November, making it more valuable than Microsoft or apple at that time.

But now, fears of an impending recession and soaring inflation are prompting investors to flee cryptocurrencies. As of Wednesday, according to coinmarketcap, the cryptocurrency market was worth about $903.2 billion.

A major cryptocurrency exchange stands out from its competitors. Binance’s leaders said earlier this month that the company still has the ability to hire more than 2000 employees this year.