Chaos in Crypto: A timeline of layoffs in 2023
The year 2023 has brought with it a wave of job cuts that have hit companies hard, regardless of their size or geographic location. With the global economy still reeling from the pandemic and market uncertainties, many employees are feeling the pinch of the ongoing economic downturn.
The crypto industry is no exception to this trend. As the industry continues to stay afloat amidst significant changes, companies are re-evaluating their business models and strategies to be ahead of the competition. This means that a huge number of employees are being laid off by crypto companies as they attempt to streamline their operations.
We've put together a comprehensive list of crypto companies that have announced major layoffs so far in 2023.
↓February 23, 2023: Dapper Labs
Dapper Labs announced a workforce reduction, reducing its full-time staff by 20%. The objective of this decision was to initiate a comprehensive organisational restructuring aimed at increasing efficiency and improving focus, enhancing Dapper Lab's competitive advantage in the market and better serving its communities.
↓February 23, 2023: Elliptic
In a bid to reduce its operating expenses, blockchain analytics firm Elliptic has cut its workforce by 10%, approximately 20 employees out of a total of 199 workers according to LinkedIn. These cuts come as part of a wider trend of layoffs within the crypto industry as companies navigate the harsh realities of the crypto winter.
↓February 22, 2023: Polygon Labs
Polygon Labs, a prominent crypto technology firm, recently implemented a workforce reduction of 20%. This latest round of layoffs affected around 100 positions, impacting several teams within the organisation. The decision was made following the crystallization of Polygon's strategy for the next several years, aiming to drive mass adoption of web3 by scaling Ethereum, and streamline operations accordingly.
↓February 22, 2023: Messari
Crypto intelligence firm Messari, led by the investor, Ryan Selkis, has undergone a workforce reduction of 15% as part of a broader restructuring effort within the company. Selkis cites market headwinds in the crypto and tech industries as a key factor in the decision, stating that it was a difficult but necessary step to ensure the company's continued success.
↓February 22, 2023: Immutable
Australian crypto gaming company Immutable has recently made the list of companies that are reducing their workforce. The company announced cutting its headcount by 11%, with Chief Executive and co-founder James Ferguson explaining that this decision was made in order to maximise the company's cash reserves and direct resources towards its most crucial projects.
↓February 15, 2023: GSR
Crypto market maker GSR has announced a 10% reduction in staff as part of an effort to implement structural changes within the organisation. According to a spokesperson, after a period of rapid expansion, the company is now focused on improving overall efficiency and continuing the development of its technology and trading capabilities.
↓February 13, 2023: Magic Eden
Non-fungible token (NFT) marketplace Magic Eden made an announcement that 22 members of its staff would be laid off as part of a "companywide restructuring." The digital collectible giant stated that the reduction in workforce was a necessary step in the restructuring process. The company acknowledged that the decision was a difficult one, but added that it in no way diminishes the talent, hard work, and dedication of the company's affected employees.
↓February 5, 2023: Protocol Labs
Protocol Labs CEO Juan Benet made a strategic decision to streamline the company's operations in order to weather the ongoing crypto winter. As part of this effort, approximately 21% of the workforce (equivalent to 89 positions) was reduced across various teams including PLGO (PL Corp, PL Member Services, Network Goods, PL Outercore, and PL Starfleet).
↓February 1, 2023: Bittrex
Seattle-based crypto exchange Bittrex is also among the list of companies that made significant layoffs as part of its restructuring efforts. The U.S. cryptocurrency exchange sacked its 83 employees, accounting for almost 30% of its total workforce. The cuts were felt across most departments, and affected employees were promised 60 days of continued pay along with additional severance.
↓February 1, 2023: Chainlysis
Blockchain analytics company Chainalysis recently made the difficult decision to reduce its global workforce by 4.8%, owing to reduced demand for its services in the private sector and the aftershocks of the 2022 crypto market selloff. The layoff is part of the company's ongoing effort to adapt to the challenges presented by the crypto market.
↓January 27, 2023; Matrixport
Singapore-based crypto investment firm Matrixport reduced its workforce by 10%, with the marketing department bearing the brunt of the cuts. The decision came as the regulatory landscape shifts and the crypto industry experiences widespread capitulations, prompting the company to reevaluate its priorities and streamline its operations.
↓January 26, 2023: Luno
Luno, a cryptocurrency exchange owned by DCG, announced a significant reduction in its workforce. The company sacked 35% of its employees, with the majority of the layoffs occurring in the marketing department. Luno currently employs over 900 people, according to its LinkedIn profile.
↓January 25, 2023: Bitcoin Suisse
In the latest round of layoffs, the Zug-based crypto financial service provider Bitcoin Suisse has sacked an undisclosed number of employees.
↓January 23, 2023: Gemini
Gemini, a leading cryptocurrency exchange, announced its third round of job cuts within a year, resulting in a 10% reduction in headcount. The decision was made in response to the ongoing crypto market downturn and was aimed at preserving the company's cash reserves.
↓January 18, 2023: Coinbase
In January this year, Coinbase Global, a major player in the cryptocurrency industry, recently laid off 950 employees as part of its restructuring plan. The economic downturn has taken a toll on the crypto sector, wiping out more than a trillion dollars and leading to the closure of industry players such as Three Arrows Capital and Celsius Network.
↓January 18, 2023: ConsenSys
ConsenSys CEO Joseph Lubin announced job cuts as the company sought to adapt to challenging and uncertain market conditions. The decision resulted in the loss of 96 jobs, representing 11% of the company's total workforce.
↓January 13, 2023: Crypto.com
Crypto.com reduced its global workforce by approximately 20%. According to Kris Marszalek, Co-Founder & CEO, several factors played into the decision to reduce headcount.
↓January 12, 2023: Blockchain.com
To better balance product offerings with demand and reduce operating costs , cryptocurrency brokerage Blockchain.com shed 110 staffers in January. All impacted employees have been promised severance packages.
↓January 12, 2023: Silvergate
The crypto bank sacked cut 40% of its staff, or 200 employees, in response to the economic realities faced by the company and the overall cryptocurrency industry. The crypto sector has been facing major losses.
↓January 6, 2023: Huobi
As part of its structural adjustment, digital currency exchange firm Huobi laid off 20% of its workforce in January this year. In addition to the above-mentioned companies, OSL, Osprey Funds, Prime Trust, Silvergate Capital , and SuperRare also eliminated their workforce in 2023.
In addition to the above mentioned companies, OSL, Osprey Funds, Prime Trust, Genesis, and SuperRare also eliminated their workforce in 2023.