Crypto Layoffs in 2023 – An Insightful Review of the Job Market
- November 13, 2023
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- crypto job market insight, crypto job market review, crypto layoffs, crypto layoffs 2023
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The crypto industry has experienced several challenges during 2023 due to some critical developments. These developments include the collapse of some known crypto exchanges and restructuring measures taken by several top companies. The trend of workforce reduction to improve operational efficiency has resulted in hundreds of employees being laid off, creating a pervasive sense of negativity throughout the industry. Consequently, career growth has continued to be increasingly difficult for job seekers in 2023.
The crypto market has shown promising progress during the final quarter of the year. However, a notable increase in job opportunities can only be expected if the market continues to demonstrate stability in the upcoming months. This article provides a holistic review of the cost-cutting measures taken by some top crypto companies in 2023 and what the future holds for talented professionals seeking new career opportunities.
A Quick Overview of the Significant Industry Layoffs in 2023
Coinbase is one of the leading cryptocurrency exchanges in the world. The global crypto exchange had to reduce its workforce by 20% in 2023 to improve operational efficiency. It was one of the major setbacks for the crypto industry as Coinbase practically had to lay off 950 employees. This critical decision was a consequence of the closure of the company’s operations in Japan.
Bittrex is another crypto company that reduced its workforce during the first half of 2023, laying off over 80 employees. Messari, known as a highly reputed data and exchange platform announced a 15% workforce reduction as a part of its organization-wide restructuring measures.
Chainalysis, a firm specializing in tracking digital-asset transactions, announced less than 5% reduction in its workforce earlier this year. Elliptic, a famous blockchain analytics firm, laid off 20 employees, affecting approximately 10% of its staff.
Dapper Labs also announced a 20% workforce reduction in February 2023 in a bid to improve operational efficiency. It is important to note that Dapper Labs is the company behind the popular NBA Top Shot NFTs and their workforce reduction caused a massive concern in the crypto job market.
The trend of workforce reduction extended to the blockchain gaming market with a known player, Immutable, laying off 11% of its staff. Another notable workforce reduction was announced by Protocol Labs, which is the parent company of Filecoin. With 21% workforce reduction, the company made the headlines for the most extensive workforce reduction in 2023.
Several other big names in the crypto industry had to opt for downsizing as the cost-cutting trend continued in 2023. Crypto.com, another famous crypto exchange, announced 20% reduction in its workforce, affecting almost 900 employees. Another major exchange, Gemini, laid off 10% of its staff, affecting almost 100 employees.
A digital asset lander, Matrixport also had to lay off 10% of its workforce. Magic Eden, an NFT marketplace, reduced 22 roles as a part of company-wide restructuring.
The impact of crypto winter in the first half of 2023 resulted in massive job cuts caused by an overall negative market growth.
Here is a quick recap of all the major layoffs recorded in the crypto industry during 2023:
- Coinbase: 20% workforce reduction (approximately 950 employees).
- Bittrex: More than 80 employees laid off.
- Chainalysis: Made layoffs affecting less than 5% of its employees.
- Messari: Workforce reduced by 15%.
- Dapper Labs: Announced a 20% reduction in its workforce.
- Elliptic: Laid off 20 employees.
- Immutable: Laid off 11% of its staff.
- Protocol Labs: Reduced workforce by 21% (89 positions).
- Crypto.com: Announced a 20% reduction in its global workforce.
- Gemini: Reduced 10% of its staff (approximately 100 employees).
- Matrixport: Shed 10% of its workforce.
- Magic Eden: Eliminated 22 roles as part of a company-wide restructuring.
The Crypto Market Shows Signs of Revival
One of the major reasons behind the cost-cutting measures adopted by several top companies has been the declining crypto market. The slow or negative growth of top cryptocurrencies during the first half of 2023 resulted in a partial market collapse, however, the numbers are improving as we move towards the end of the year. Thanks to the October rise in the Bitcoin price, the crypto market is showing promising growth. This could potentially lead to companies rebuilding their teams in anticipation of the next bull run, which will open several new and exciting opportunities for job seekers.
The good news is that top companies are hiring again, and you can improve your chances of getting rehired by applying for the latest openings on cryptojobs.com.
The leading global web3 job board, cryptojobs.com, has been founded by Carl Runefelt, who is popularly known as the Moon Carl. With cryptojobs.com, he envisions to transform the web3 job market by connecting the top talents with the finest companies and leading the industry standards for innovation and professionalism.