According to a November 14 report from crypto data aggregator platform CoinGecko, as of November 13, 2022, 4,695 employees in the crypto space have been fired, accounting for 4 percent of the layoff case among all “technological startups. However, the authors of the report warn that crypto layoffs could increase in the coming months as the full impact of FTX’s sudden crash comes to light: more cryptocurrency layoffs may occur in the coming months.” The trend of this set of cryptocurrencies follows the prices of cryptocurrencies. “Layoffs have consistently and effectively followed the same trend as cryptocurrency prices. FTX hasn’t reversed this more general trend, although it’s a tragic event. There will be layoffs because of this, but it gives good projects an opportunity to pick up good talent. that we collect,” he said.
Kevin Gibson, founder of employment agency Proof of Search, was less optimistic, sharing that he had a candidate who would start work today, but his offer was withdrawn during the first phone call with company. Gibson says it’s difficult to comment on how the FTX crash will play out as the situation changes daily, but he believes his candidate’s experience won’t be an isolated incident.
Companies in the crypto sector have already experienced several layoffs during the year due to the downturn in the market. The industry’s most recent layoffs include 1,000 layoffs at payment system Stripe, 22 percent layoffs at blockchain developer Flow Dapper Lab, and 10 percent layoffs at venture capital firm Digital Currency Group. All layoffs took effect in early November.
Galaxy Digital, an investment firm specializing in digital devices, also forecast a 20 percent cut on November 1st. Coinbase will lay off 60 more employees on November 10, according to Yahoo Finance. CoinGecko’s latest report follows an earlier report from Nov. 4 that looked at the cities most affected by cryptocurrency layoffs. The list is topped by San Francisco, home to Silicon Valley, one of the world’s largest centers of technology and innovation, followed by Dubai, New York and Singapore.
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