Crypto winter gets bleaker as companies lay off staff

Paigambar Mohan Raj
Source: DNA India

The recent crypto crash has only added to the pain of the already existing crypto winter. This has had an impact not only on individual investors but on major crypto-related businesses, including exchanges.

In light of these events, let us take a look at the companies that have decided to lay off their employees due to current circumstances.

Coinbase: Just today, Coinbase Global has revealed that they plan to reduce their workforce by up to 18% by Q2 of 2022. This is regarding the company’s cost-cutting measures. As a result, there will be roughly 5,000 workers on staff as of the conclusion of the current quarter. The plan is expected to be implemented by the end of the second quarter.

Robinhood: After a quick expansion the previous year, retail trading startup Robinhood decided to reduce employment numbers in April, citing duplicate positions and job responsibilities. About 9% of full-time employees will be impacted by the change.

Gemini Trust Co.: According to co-founders Cameron and Tyler Winklevoss, the crypto platform Gemini has reduced its personnel by about 10%. The two blamed the layoffs on the choppy market circumstances, which are anticipated to persist for some time, in a post announcing the announcement.

A parting package and healthcare benefits will be given to every employee. The business also shut down its physical locations.

The Co-founders stated,

“Our highest priority throughout will be to treat everyone affected with compassion and respect.”

Rain Financials: People with firsthand knowledge of the situation claim that Rain Financial Inc., one of the biggest crypto exchanges in the Middle East, has let go of dozens of staff members due to the recent decline in digital assets.

Joseph Dallago, Co-founder and CEO, said

“We have had to make tough decisions to be able to navigate through this period of uncertainty and we can confirm we have downsized our Rain workforce.”

BlockFi: In a Monday Twitter thread, BlockFi also announced that it will reduce its staff. About 170 employees, or approximately 20%, of its workforce, will be let go, according to CEO Zac Prince.

Prince stated,

“Today is a painful day for BlockFi but more so for employees who we have to part ways with.” CEO Kris Marszalek announced in a tweet over the weekend that will lay off roughly 260 people, or almost 5% of its staff. He explained that their strategy is to maintain attention on carrying out their roadmap while optimizing for profitability.

Marszalek stated that the market will turn and when they do, the exchange will be ready to “drive and capture” the next wave of growth for crypto adoption.

Binance, unlike other crypto businesses?

While many major crypto businesses have had to let go of their workforce, Binance, the largest crypto exchange in the world is gearing up for expansion.

While speaking at the Consensus 2022 conference last week, CEO Changpeng Zhao (CZ) said,

“We have a very healthy war chest; we in fact are expanding hiring right now. If we are in a crypto winter, we will leverage that, we will use that to the max.”

Zhao said that, in contrast to other cryptocurrency businesses, Binance has mostly refrained from investing heavily in promotional expenses like Super Bowl advertisements or the naming rights to sporting venues, which has aided its capacity to expand amid choppy market circumstances.

Zhao also stated that Binance is aiming to continue investing in other businesses in addition to new hires and a focus on acquisitions.