Coinbase

Wave of layoffs in the crypto world after the fall of Bitcoin

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While last year the market was very optimistic, in 2022 it is the opposite. Indeed, the values ​​of cryptos are collapsing. And Bitcoin, which had risen above $64,000 in November, has now fallen below $23,000.

Faced with this situation, crypto platforms must tighten their belts. And the announcements of layoffs are linked. The Coinbase platform, for example, has just announced the layoff of 18% of its employees.

“We seem to be entering a recession after an economic boom of more than 10 years”writes Brian Armstrong, the boss of Coinbase, in a letter to employees. “A recession could lead to another crypto winter and could last for an extended period. »

Armstrong explains that Coinbase needs to reduce its workforce in order to stay financially healthy during this difficult time. But beyond that, he now admits that the company wanted to grow too fast.

While Coinbase had 1,250 employees at the start of 2021, that number grew 200% year-on-year. Over the past 18 months, the number of employees has even quadrupled.

“At the time, we were in the early innings of the bull run and adoption of crypto products was exploding”he writes. But today, it’s clear its CEO at Coinbase has overhired.

Affected employees will receive 14 weeks of severance plus two weeks of severance per year spent with the company, for those who have worked at Coinbase for more than a year.

Gemini, Crypto.com and BlockFi also license

As early as the beginning of June, Gemini, the Winklevoss brothers’ crypto exchange, announced the layoff of 10% of employees. Due to these headwinds which “are likely to persist for some time”, Gemini bosses have asked team leaders to focus only on essential products and ensure that their teams are the right size.

For its part, BlockFi announced the layoff of 20% of its employees. “Like many others in technology, we have been affected by the dramatic change in macroeconomic conditions, which have had a negative impact on our rate of growth”wrote its CEO, Zack Prince, on Twitter.

As for Crypto.com, it announces the dismissal of 5% of employees, or nearly 260 people. “We will continue to assess how best to optimize our resources to position ourselves as the strongest builders during the down cycle in order to become the biggest winners in the next bull run”I pointed to the CEO, Kris Marszalek.

Other companies reassure their employees

It should be noted, however, that despite this crypto winter, companies have rather wanted to reassure their employees. As these competitors lay off, Kraken said in a blog post that it has no plans to readjust its recruiting plan or lay off. Thus, 500 positions are still to be filled for the rest of the year.

For the company, bear markets are an opportunity to sort out candidates interested in media hype and those who believe in Kraken’s mission.

“That’s why, despite a sharp drop in crypto prices and an uncertain macro environment, we’ve taken this opportunity to align our internal culture around a set of shared values ​​that we believe will keep us nimble, focused and competitive in executing our mission in the years to come”the company also said.

And like Kraken, Binance.US would also have reassured its employees. According to an article published by TechCrunch, in a note to employees, its CEO, Brian Shroder, allegedly wrote that Binance.US is “in the strongest possible position to not only successfully ride out this downturn, but also to become the leading crypto platform in the United States. »

As for the boss of Binance (different from Binance.US), he seems to blame his competitors for having spent lavishly. “It wasn’t easy to say no to Super Bowl ads, stadium naming rights, big sponsor deals a few months ago, but we did it”Changpeng Zhao wrote on Twitter. It also announces that 2,000 positions are to be filled.

Sam Bankman-Fried, the boss of FTX, wrote a few days ago that while others lay off, FTX will continue to grow. Besides that, the platform had decided not to overhire, like some of its competitors.

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