- Crypto layoffs 2022 brought numerous woes to the crypto industry;
- Some notable layoffs in 2022,
- Crypto regulation is picking up.
2022 is on track to go on record as the worst year for the crypto industry as a whole. From the numerous bankruptcy filings and implosions in the space to the unforgiving crypto winter that has erased hundreds of billions of dollars of wealth, the industry has suffered several blows to its image.
Another unfortunate factor contributing to the biting effect of the crypto winter and chipping away at confidence in the market is the numerous layoffs seen in crypto companies. According to a November 14 report from CoinGecko, crypto company-related layoffs account for 4% of all layoffs in the technology industry this year.
The report showed that as of November 13, 2022, 4,695 crypto sector workers had been put out of jobs. The report placed the crypto sector in the tenth position for layoffs in the tech space, which has seen over 100,000 people go out of jobs this year.
However, another report by CoinDesk puts the layoffs in the crypto sector at a damning 26,400 workers as of December 5.
Let’s take a tour of some of the layoffs recorded in the crypto space this year in the order of the most recent.
Crypto Layoffs in 2022
Swyftx Slashes Workforce by 35%
Australian-based crypto exchange Swyftx announced on December 5 that it was letting go of 90 of its 259 employees (35%) due to the downturn of the crypto market. At the time of writing, this is the most recent layoff case in the crypto market.
Interestingly, this comes as the exchange plans to facilitate a capital raise to beef up its balance sheet and ensure its $1.5 billion merger with stockbroker Superhero is achieved.
While Swyftx says it has no ties to FTX, it did claim that the layoffs were a result of the FTX meltdown.
Bybit Sends 30% Of Workers Packing
Dubai-Bybit announced its second round of layoffs for 2022 on December 4, after the giant exchange’s CEO and co-founder, Ben Zhou, took to Twitter to say the company was working towards “refocusing” its efforts as we go through what he described as a “deepening bear market.”
Noting that the layoffs will cut across the board, Zhou noted in the 4-part Twitter thread that “it’s important to ensure Bybit has the right structure and resources in place to navigate the market slowdown and is nimble enough to seize the many opportunities ahead.”
In June this year, the cryptocurrency exchange terminated the contracts of 18% of its staff, indicating that the company is struggling immensely in 2022.
Kraken Cuts 30% Of Workforce Loose
In what is one of the largest single layoffs in 2022, US-based Kraken let go of 1,100 workers (30%) on November 30.
In a blog post dubbed “Kraken Takes Steps to Weather Crypto Storm,” the exchange noted that the action was one of the hardest decisions to make in its history. The exchange blamed the unfavorable business conditions of the crypto market, noting:
“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups. We responded by slowing [our] hiring efforts and avoiding large marketing commitments. Unfortunately, negative influences on the financial markets have continued, and we have exhausted preferable options for bringing costs in line with demand.”
Coinbase Cuts 60 More Jobs
Nasdaq-listed crypto company Coinbase reportedly cut 60 jobs on November 10, blaming the persistent downturn on the crypto market. Speaking to the press, a Coinbase spokesperson said the move was done to “help Coinbase operate as efficiently as possible.”
This job cut is Coinbase’s second in 2022. The San Francisco-based crypto exchange laid off 1,100 employees in June this year, explaining at the time that it was part of a cost-cutting initiative.
Dapper Labs Offloads 22% Of Its Staff
Prominent Web3 company Dapper Labs was one of the many companies that have been pressed to cut its staff to save its skin in the ravaging crypto bear market. On November 3, the company let go of 22% of its workforce, citing “macroeconomic environment” factors.
Source: Dapper Labs
Dapper Labs’ downturn comes as more and more investors flee the NFT scene, in which it is heavily exposed. In October 2022, the total NFT sales volume came in at a weak $2.6 million, compared to the $40.8 million recorded in October 2021.
BitMEX Terminates 20% Of Workforce
BitMEX was not left out in the carnage that swept across the crypto space, reportedly forcing the crypto exchange to let go of between 20% and 30% of its staff. A BitMEX spokesperson originally stated that 30% of the exchange’s staff had been cut off but later recanted the statement.
BitMEX said it made the move as it plans to return its focus to derivatives trading. Notably, the layoffs occurred a week after former CEO Alexander Hoeptner was sentenced to 12-month probation for violating the Bank Secrecy Act (BSA).
Galaxy Digital Says Goodbye to 20% Of Its Staff
On November 1, Galaxy Digital broke the news that it was letting 20% of its staff go, citing unfavorable macroeconomic circumstances.
Explaining the layoffs to the press, a Galaxy Digital spokesperson said:
“While our industry continues to face macroeconomic headwinds, Galaxy remains focused on building for the future state of institutional adoption and on enhancing long-term shareholder value. We are always considering optimal team structure and strategy and will share future plans when finalized.”
Crypto layoffs 2022:Crypto.com Parts Ways With 40% Of Its Staff
So far in 2022, Crypto.com has had the highest number of layoffs, after firing over 2,000 workers, according to reports.
Things have been so bad for Crypto.com that it has had to pull back on numerous multimillion-dollar sponsorship deals with several sporting entities.
Speaking to the press, a Crypto.com spokesperson explained:
“Crypto.com underwent a restructuring process that concluded in July to strengthen our position amidst the backdrop of a bear market climate… As part of that restructuring, we made the difficult decision to conduct targeted job reductions.”
The numerous questionable activities by several key players in the crypto industry, such as Do Kwon and, more recently, Sam Bankman-Fried, have left a bitter taste in the mouths of many and a massive crypto crash in its wake.
That said, many analysts see this as the last straw for regulatory authorities, who have largely sat on the sidelines until now, and believe the coming years could usher in a more aggressive regulatory effort from these regulators.