However, despite the industry’s overall upward trajectory, it has recently suffered a brutal comedown due to several factors. As the crypto market downturn rages on, companies within the space are also forced to adapt to changing market conditions and investor sentiment, leading to a series of layoffs across crypto firms.
In this article, we will explore some of the recent high-profile layoffs that have hit crypto companies.
10 Most Recent Crypto Layoffs
1. OpenSea Reduces Staff by 50%
Last week, leading non-fungible token (NFT) marketplace OpenSea announced plans to lay off half its workforce. In a post on X (formerly Twitter), CEO Devin Finzer said that the firm is making “big changes” to focus on a new version, OpenSea 2.0.
So we took a step back and reimagined our operating culture, product, and tech from the ground up.
And today, we’re re-orienting the team around “OpenSea 2.0,” a big upgrade to our product – including the underlying technology, reliability, speed, quality, & experience.
— Devin Finzer (dfinzer.eth) (@dfinzer) November 3, 2023
While the move was announced as a ‘reimagining’ of the company, a representative later confirmed to Decrypt it would result in around a 50% reduction in its workforce.
2. Ava Labs Lays Off 12% of staff
Earlier this week, Ava Labs, the team behind the Avalanche (AVAX) blockchain, confirmed a 12% reduction in its workforce, citing the need to reallocate resources as the driving force behind the staff cuts.
“This reduction in force affected 12% of Ava Labs and allows us to reallocate resources to double down on the growth of our firm and the Avalanche ecosystem,” Emin Gün Sirer, founder and CEO of Ava Labs, wrote in a post on X.
Today we parted ways with some of our Ava Labs team members. We are no longer a 12 person startup, but we strive to capture the speed and energy of a small, nimble team.
This reduction in force affected 12% of Ava Labs, and allows us to reallocate resources to double down on the…
— Emin Gün Sirer🔺 (@el33th4xor) November 7, 2023
3. Coinhouse Slashes Workforce by 15%
French crypto firm Coinhouse has confirmed that it will be cutting 15% of its workforce, with reports suggesting that the firm has let go of 10 employees out of a total headcount of 70. This marks a significant change for the company, as it had 100 employees just a year ago.
4. Polkadot Developer Cuts Staff by 30%
Parity Technologies, the company behind the Polkadot blockchain, has cut 30% of its workforce, or about 100 employees, as part of its plan to “shift” focus to its technology.
Parity’s CEO, Björn Wagner, told Bloomberg that the majority of the affected employees were in the marketing and business development departments.
5. Chainalysis Announces Second Round of Layoffs in 2023
In October, blockchain analytics firm Chainalysis announced that it is laying off another 150 employees, representing over 15% of its workforce, amid reduced commercial demand.
The second round of job cuts came after the company confirmed plans to lay off less than 5% of its 900 employees back in February.
6. Ledger Reduces Staff by 12%
Hardware crypto wallet manufacturer Ledger has reduced staff by 12%.
In a blog post, CEO Pascal Gauthier said the job cuts are necessary “for the longevity of the business,” citing the ongoing bear market and the collapse of some high-profile firms, including FTX and Voyager Digital.
7. Yuga Labs Slashes U.S. Employees
Yuga Labs, the Web3 startup behind Bored Ape Yacht Club and CryptoPunks, has laid off employees from its U.S. team as part of a broader restructuring.
The company did not specify how many people were affected by the layoffs, but the company is said to have 120 employees after cuts.
8. Certik Cuts up to 15% of Workforce
Blockchain security firm CertiK has cut approximately 15% of its workforce, citing the evolving market dynamics.
9. Qredo Cuts 50% Staff
Crypto infrastructure provider Qredo has cut 50% of staff in order to reduce expenses as it navigates the challenges posed by the ongoing bear market.
The current headcount at the firm stands at about 50, down from over 200 earlier this year, The Block reported, citing sources familiar with the matter.
10. Layoffs at Major Crypto Exchanges
Aside from these crypto firms, almost all major crypto exchanges have recently downsized their workforce.
Coinbase, for one, has been among the many crypto companies that have been hit hard by the recent crypto meltdown, announcing multiple rounds of layoffs since the FTX fallout.
Earlier this year, New York-based cryptocurrency exchange Gemini also revealed that it is letting go of 10% of its workforce. Likewise, Kraken, the world’s third-largest crypto exchange by volume, has laid off about 30% of its employees.
Back in August, Indian Crypto exchange CoinDCX, backed by Coinbase Ventures, fired 12% of its Workforce, citing ongoing macroeconomic conditions and the TDS on crypto transactions.
Even Binance, the world’s largest crypto exchange, has confirmed that it has laid off some employees. “As we continuously strive to increase talent density, there are involuntary terminations,” CEO Changpeng Zhao wrote on X while rejecting mass layoffs.
As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off. 4 FUD.
On the bright side, they just can’t resist talking about us.
We are still hiring. 🤝
— CZ 🔶 Binance (@cz_binance) July 14, 2023
Crypto is volatile in all forms, with employment also rising and falling as companies aim to survive and thrive in an industry that changes by the day.
Perhaps some companies grew too fast during the green months, and we now see a more strategic move towards leanness. Or maybe it is about companies looking to extend their cash runway as they continue building out their products and seeking their markets.
Our sympathies for those who have lost their jobs — perhaps our article on the top tech skills to learn for 2024 for a six-figure salary may be of help. Otherwise, a sector that is crying out for more staff is the cybersecurity industry.