Crypto Winter continues to affect the industry from all angles, forcing some of its biggest players to scale back their expansion plans, resulting in layoffs.
Approximately 23,600 employees lost their jobs in the cryptocurrency sector as of December 9, 2022. This figure represents the largest number of layoffs ever recorded in the industry in one year.
What reportedCoinbase is among the top companies with the highest layoffs in 2022, with approximately 1160 employees lose their jobs: 4.6% of total crypto layoffs for the year.
It is closely followed by Kraken, which laid off around 30% of its workforce, representing 1100 employees. Furthermore, Bybit was not far behind in making 1,020 layoffs.
Meanwhile, Amber Group, a digital asset firm, is next on the list, recording 800 downloads for the year. Notably, Huobi and Bitpanda were not affected, registering 300 and 270 layoffs, respectively. Others on the list include Snap, BlockFi, Gemini, and more.
Crypto exchanges bear greater implications of the market situation.
Statistics indicate that the prevailing bear market had a bigger impact on crypto exchanges than other companies within the industry. Remember that most of these exchanges survive on the transaction fees generated on their respective networks. The persistent bear market led to a massive drop in trading volume, thus leaving them in a state of quandary.
Despite this, layoffs in the cryptocurrency sector accounted for 4% of the overall tech sector as of November 2022, according to a report by Coin Gecko. The tech sector laid off 100,000 employees, and the consumer tech sector accounted for 15.6% of all tech layoffs in 2022.
However, as the bear market lingers into the new year, there is still uncertainty that crypto companies will not continue the layoff trend. Silvergate Capital (SI) has already initiated the first mass layoff of the year after laying off some 40% of your staff.
