CoinGecko counts January layoffs in the crypto industry

In January 2,806 people lost their jobs in the digital-currency sector, according to CoinGecko’s report. 84% of layoffs were at cryptocurrency exchanges.

Analysts cited lower trading volumes and revenues as the key drivers. Among the exchanges announcing optimisations: Coinbase, Blockchain.com, Crypto.com, Luno and Huobi.

CoinGecko noted that Crypto.com and Coinbase had already cut teams in June 2022. The latter also laid off 60 staff in November.

According to the report, January alone accounted for 41% of all layoffs for 2022. CoinGecko says the current year’s figures may be higher than last year’s.

“During the bull market, crypto exchanges aggressively expanded in response to the rapid growth in demand from retail investors. Crypto companies were hard hit with the onset of the crypto winter amid a tight macroeconomic environment, and layoffs showed that exchanges are ‘swimming naked’ and can no longer withstand previous excesses,” said Decrypt cofounder Bobby Ong.

By number of layoffs, analysts highlighted June (3003), November (1805) and December (649) last year.

As catalysts for the reductions, the collapses Terra, Three Arrows Capital, Voyager Digital, BlockFi, FTX and the bear market triggered by these events bear market in combination with worsening macroeconomic conditions.

Microsoft intends to lay off around 10,000 people by March. PayPal will cut 2,000 employees or about 7% of its staff. Layoffs have also hit Amazon, Google, Meta and other large companies.