Bear market: Some crypto firms cut jobs while others aim for sustainable growth

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Bear market: Some crypto firms cut jobs while others aim for sustainable growth

While crypto companies have been faced with major layoffs, things are nowhere as bad as the tech industry or other traditional sectors.

To put things into perspective, since November 2021, the total market capitalization of the digital asset industry has plummeted from it’s all-time high of $3 trillion to its current levels of approx. $1.27 trillion, thus showcasing a loss ratio of over 55%.

While this massive monetary downturn can be attributed to a range of factors, including the ongoing Russia-Ukraine war, rising inflation figures and worsening macroeconomic conditions have had a major impact on the crypto job landscape.

For example, earlier this month, Gemini, a cryptocurrency exchange helmed by the Winklevoss twins, announced that the bear market had forced them to lay off nearly 10% of its employees. The brothers noted that as part of their first major headcount cut, Gemini had to shift its focus on products that are “critical” to the firm’s long-term vision and goals. In fact, the brothers conceded that the existing turbulence was likely to persist for a few months at the very least, adding:

There is no denying the fact that the crypto industry has grown from strength to strength over the last couple of years. However, the last six odd months have been anything but pleasant for the market. 

Criticizing “hyper-growth companies,” Bankman-Fried said that hiring more staff quickly doesn’t necessarily lead to a substantial increase in productivity since rapid expansion, more often than not, makes it more difficult for everyone to stay on the same page. “Sometimes, the more you hire, the less you get done,” he said.

Even though FTX had slowed down its hiring earlier on in the year, the move, he noted, was not due to a lack of funds but rather a means of ensuring that new team members had enough time to adjust to their new roles and professional surroundings.

Some crypto recruiters noted that while the digital asset industry has indeed witnessed layoffs, its rate of hiring has remained spectacularly high, especially when compared to the traditional tech space. To this point, a number of Silicon Valley giants including Twitter, Uber and Amazon have announced major job cuts recently.

Netflix also terminated the roles of 150 employees after posting historically poor growth figures, while Facebook’s parent company Meta noted that it was instating a hiring freeze for any mid-to-senior-level positions after failing to meet revenue targets.

Recent: Self-regulatory orgs for crypto keep ecosystem afloat pending clear regulations

Neil Dundon, founder of employment agency Crypto Recruit, said that things have not slowed down when it comes to hiring within the digital asset industry. “We have a team based globally across the U.S., Asia/Pacific and European regions and demand is equally as high across the region,” he pointed out in a recent interview with Cointelegraph.

Similarly, Kevin Gibson, founder of Proof of Search, told Cointelegraph that the lay-offs taking place across the tech sector have had little to no impact on his crypto industry clients so far, adding:

“I’ve only heard of two companies letting people go. This may change in the next month, but any slack will immediately be taken up by well-funded quality projects. As a candidate, you won’t notice any difference. if you do lose your job, you will also have multiple offers pretty quickly.”

Therefore, as the ongoing downturn continues to affect the global economy in a big way, it will be interesting to see how companies operating within this space are able to stave off bearish pressure and survive the ongoing financial onslaught.

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