Major crypto companies simultaneously cut staff

While the market turns bad, many big names in the crypto industry have announced plans to reduce operating costs by streamlining their staffing systems.

With the decline of the cryptocurrency market in 2022, especially since the dump in May, a series of large companies in the crypto industry of the Western world have announced staff cuts in order to save operating costs.

In early April, the BitMEX exchange admitted to cutting 75 jobs globally after failing to acquire a bank in Germany. A BitMEX representative said that this move is to serve a change in the company’s operating strategy.

At the end of April, the popular stock/cryptocurrency trading app in Western countries, Robinhood, announced that it had laid off “about 9%” of its global workforce. The company claims this is to eliminate “duplicate positions and jobs that complicate operations”.

As of May 27, cryptocurrency exchange Bitso operating in Latin America was reported to have laid off 80 out of 700 employees. Bitso said the reason for the layoffs was “in the long-term interest of the company.”

On June 2, the American exchange Gemini announced a 10% reduction in its total staff. Although not disclosing specific numbers, it is estimated that Gemini has more than 1,000 employees. This is the first time the exchange has implemented layoffs since its inception in 2014.

The two founders of the exchange, the billionaire brother Winklevoss, wrote in a blog post announcing the move:

“This is where we are now, in the contraction phase that is settling into a period of stasis—what our industry refers to as ‘crypto winter.’ This has all been further compounded by the current macroeconomic and geopolitical turmoil.”

Not stopping there, Gemini was also sued by the US Asset Futures Trading Commission (CFTC) on June 2 for providing inaccurate information related to its Bitcoin futures product.

Bahrain-based exchange Rain Financial is reported to have laid off dozens of employees, while Argentina’s Buenbit has also reduced its staff by 45%.

Finally, America’s largest cryptocurrency exchange Coinbase announced that it would “pause hiring,” even canceling previously accepted job offers. The reason given by Coinbase is to “respond to the market situation and give priority to selected businesses”.

Not only in the crypto sector, but in the global technology industry in May also recorded more than 15,000 job cuts.

Meanwhile, other big names such as Binance, FTX, Huobi, OKX, Kucoin, Crypto.com, and Bybit have yet to make any move regarding personnel. In mid-May, Binance CEO Changpeng Zhao even announced that the exchange was actively recruiting more people.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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