As the crypto bear market continues, organisations across the industry are reducing their workforce to tackle massive financial losses. The cryptocurrency industry has met the sharp end of the global economic crisis. All major coins have been on a continuous downward spiral since the beginning of this year, and experts believe it’s about to get worse.
World-wide recession, higher-interest rates, and inflation are causing crypto holders to liquidate their assets at an unprecedented speed. The market has seen more than $500 million in liquidation over this week alone, meaning that major crypto exchanges are in for a tough financial quarter.
The Australian crypto exchange Swyftx today has announced that it’s laying off 21% of its staff amidst financial worries. Lower prices and continuous liquidation is hampering these major exchanges, hindering their ability to retain their existing workforce.
Swyftx has quoted that the decision to reduce its workforce is purely strategical, following the increasing likelihood of a global recession. The company has laid off 74 employees today, with executives hinting more layoffs would be likely if the economic situation doesn’t improve.
Nearly all top-tier exchanges have reduced their staff during the bear market
Swyftx isn’t the only company to take such measures. Almost every major crypto exchange has reduced its workforce to some extent during this bear market. In the last two months, Coinbase and BlockFi have reduced almost a fifth of their workforce. Coinbase laid off 20% of its staff in June, with the majority being US employees.
Similarly, BlockFi had also made 170 of its employees redundant. One of the oldest crypto exchanges, Blockchain.com has also laid off 25% of its workforce. Singapore-based exchange Vauld was hit one of the hardest, as the platform had to suspend all deposits, withdrawals, and trading on its platform in July. Although there are no official numbers, Vauld is guessed to have shortened over 50% of its workforce.
Recently, Crypto.com has also laid off 260 employees, with hundreds more to follow in the coming weeks. Unanimous sources have hinted on social media that the official number of employee reductions could exceed 1,000 by the end of this month.
The crypto industry has been a booming sector for lucrative employment opportunities across different skill classes for the past few years. However, as the global economic crisis is getting worse every day, it looks like crypto employees are in for a difficult Christmas.