In January 2023, 14 cryptocurrency companies reduced their workforce by laying off a minimum of 2,900 employees in the crypto sector.
This trend picked on from 2022, despite the crypto markets starting the year positively, with bitcoin at a 3 – month high, trading at over $23, 000, according to CoinGecko.
In the most recent news, Prime Trust, a crypto infrastructure provider, reportedly laid off a third of its workforce.
BREAKING: Crypto services company Prime Trust has laid off one third of its staff due to the impact of the pandemic. This is a major blow to the crypto industry and a reminder of the need for more robust safety nets. #cryptocurrency #crypto #PrimeTrust #layoffs
— BitArchive (@ChainArchives) January 30, 2023
This layoff is estimated to affect approximately 100 employees, based on Prime Trust’s current headcount of 312 staff members, as shown on the company’s Linkedin page.
In addition to Prime Trust, other companies in the crypto industry have recently undergone layoffs:
- Prime Trust lays off 100 employees
- Matrixport reportedly laid off 30 employees, according to a report by Bloomberg on January 27th.
- The crypto exchange Gemini also reportedly laid off about 100 staff, according to a report from The Information on January 23 2022
- The biggest job cuts in the cryptocurrency sector in January 2023 came from Coinbase, which decreased its staff by approximately 950 employees on January 10 2023
- Other leading exchanges in the industry, such as Crypto.com, Luno, and Huobi, also laid staff off with reductions of approximately 500, 330, and 320 employees respectively
- Struggling crypto conglomerate, Digital Currency Group (DCG) and its subsidiaries, experienced substantial layoffs with 485 workers being let go in January 2023 as the company struggles through financial difficulties
- Luno, which is owned by DCG, had the most job cuts, while DCG itself fired 66 employees
- DCG subsidiary lending platform, Genesis, eliminated 63 positions
- DCG asset management firm, HQ Digital, was closed, impacting 26 employees
- Finally, crypto bank, Silvergate, let go 200 employees
- The exchange, Blockchain.com exchange, cut 110 workers
- ConsenSys, the parent company of MetaMask, laid off 96 staff members
- NFT marketplace, SuperRare, also laid off 20 employees