Cryptocurrency companies began massive layoffs of employees

June 22, 2022

The world of cryptocurrencies is going through hard times right now. A substantial decline in the value of Bitcoin and Ethereum has led to the fact that every crypto asset is now heavily devalued. Of course, this has affected all crypto companies, and many of them are already forced to take steps to preserve the viability of their business. So, more and more exchanges are announcing the dismissal of many employees.

Bybit to cut 20% to 30% of employees

Bybit is a reasonably popular crypto exchange that allows you to earn on jumps in value, buy and sell NFTs, and participate in various promotions.

Recently, Wu Blockchain posted information on its Twitter page with a link to a cryptocurrency exchange document that Bybit will be forced to lay off 20 to 30% of all employees shortly.

According to some data, the company employs about 2 thousand people today. It is assumed that a quarter of them will soon be out of work. This mass layoff of employees is explained by the fact that “the growth in the size of the organization outpaced the business growth.”

Starting this week, the company will undergo significant personnel changes. It is assumed that mobile groups will be created to help reduce the cost of staff service and not lose the quality of customer service.

In a letter to employees, Bybit CEO Ben Zhou said that this is one of the most difficult decisions because he will have to lose critical personnel. It is assumed that in some departments, it is necessary to lay off up to 50% of the workforce.

Bybit executives assure that they will take care of the laid-off customers: they will pay them compensation and help them in further employment.

It is worth saying that Bybit is not the only crypto exchange with such problems.

Coinbase announced the layoff of a large number of employees

Due to the onset of crypto winter, the largest US exchange Coinbase is forced to lay off up to 18% of its employees.

The company’s CEO, Brian Armstrong, said that a further decline in the market is forcing the company to reduce costs, which means laying off many employees.

He also stated that over the past 18 months, the company had increased its staff by 4 times. Such a rapid increase in the company turned out to be unjustified; therefore, when the crisis came, the company was forced to reduce the number of employees.

People who are made redundant will receive compensation equal to 14 weeks’ wages with bonuses for working more than one year. Coinbase will also pay for 4 months of medical insurance and assist in further employment.

According to some reports, more than 5 thousand people work in Coinbase, and 1.1 thousand will be fired soon.

BlockFi to lay off a fifth of all employees

Crypto lending platform BlockFi is forced to cut staff by 20% in the next few months due to the crypto winter. To maintain profitability, BlockFi has taken several measures, including:

  • reduction of marketing costs;
  • elimination of non-critical suppliers;
  • reduction of executive remuneration;
  • the slowdown in headcount growth.

However, this did not give the desired result, so the company’s management was forced to lay off up to a fifth of all employees.

Binance Thinks Crypto Winter Is a Reason to Increase Staff

At Consensus 2022, Binance CEO Changpeng Zhao stated that crypto winter is an excellent solution to expand the number of employees and increase business volume by purchasing new assets.

According to him, the crypto exchange is actively increasing its staff and conducting various mergers and acquisitions of other companies.

How good this solution is not yet clear, but we will be able to see the results shortly.


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