Crypto Firms Make Job Cuts Amidst Ongoing Crypto Winter
This week, many cryptocurrency companies have eliminated jobs in response to the current crypto winter. However, these companies have chosen to keep "impactful" people on staff as they prepare for a "longer slump."
At least 216 jobs were cut across three different cryptocurrency companies. These companies are open-source software laboratory Protocol Labs, blockchain data firm Chainalysis, and cryptocurrency exchange Bittrex. Each of these companies reduced their workforce by 89, 83, and 44 employees, respectively.
In a blog post dated February 3, Juan Benet, CEO of Protocol Labs, the firm that introduced Filecoin (FIL), said that the company will be cutting jobs because it needed to concentrate its workforce "against the most impactful and business-critical projects."
He claimed that the firm had come to the conclusion that it was in the best position to "weather this protracted winter" by eliminating "89 jobs," which is equivalent to around 21% of its staff.
Given that the cryptocurrency business is now experiencing "very tough" conditions, Benet said that the firm should "plan for a lengthier slump."
Meanwhile, on February 1, Bittrex CEO Richie Lai emailed the firm's workers to notify them that the company would be reducing its employment in order to "maintain the long-term health" of the business.
On February 2, the email was shared inappropriately on Twitter. Lai claimed that despite the fact that the leadership team has been "working vigorously" over the last several months to decrease expenditures and boost efficiency, the efforts have not achieved the "results required." Lai added that the efforts have not delivered the "results necessary."
Lai went on to say that the current state of the market necessitated a reevaluation of the company's approach and a readjustment of its "investments with the new economic climate."
On February 2, 2018, records pertaining to employment in the state of Washington indicated that Bittrex had eliminated 83 positions.
According to statements made by Maddie Kennedy, director of communications at Chainalysis, to Forbes on February 1, the firm let off 44 of its 900 workers, which represents around 4.8% of the workforce. Kennedy said that those who were let go were "mainly in sales" at the company.
The announcement of these layoffs follows reports that in January, at least 2,900 employees were let go across 14 different cryptocurrency organisations.
Among those companies, Coinbase saw the most personnel reductions, with 950 employees losing their jobs on January 10th.
During this time, rival cryptocurrency exchanges Crypto.com, Luno, and Huobi each laid off about 500 employees, 330 employees, and 320 employees, respectively.