As the crypto bear market continues, organizations 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 downward spiral since the beginning of this year, and experts believe it’s about to worsen.
Australian crypto exchange Swyftx has laid 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 quoted that reducing its workforce is purely strategical, following the increasing likelihood of a global recession. The company laid off 74 employees, with executives hinting more layoffs would be likely if the economic situation doesn’t improve.
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. Coinbase and BlockFi have reduced almost a fifth of their workforce in the last two months. Coinbase laid off 20% of its staff in June, with the majority being US employees. 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 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.