ConsenSys, an Ethereum-based software development company, may lay off up to 100 employees. According to people involved in the case, it could be more. But this download on ConsenSys is not the only one in the crypto industry. Indeed, some companies have had to get rid of some of their staff.
ConsenSys breaks by market carry
The current bear market is not the first, but it will have been the longest. Moreover, analysts estimate that the market will be down for a long time. In this context, it seems that everyone is losing, even software development companies. So, to stay afloat, ConsenSys will need to shed 100 employees, or even more. Note that the company only has 900. We learned from CoinDesk that as of April 2022, nearly 27,000 people have lost their jobs in the crypto industry. The redundancy plan is being finalized at ConsenSys and may become official in the coming days.
Failing to go into debt to continue operating, companies choose to cut payroll. The immediate consequence is a contraction of industry innovations and developments.
Another mass layoff in the crypto industry
To get an accurate idea of the phenomenon, here is a small list of the most spectacular vacations from work. The phenomenon had started with the BitMEX powerhouse which was separated from 75 employees in April 2022. On November 30, 2022, Kraken laid off 1,100 people, or approximately 30% of its staff.
Additionally, on January 10, 2022, Coinbase announced the layoff of 950 employees. We recall that last June, the company was still parted with about 1100 people. In total, Coinbase will have laid off over 2,000 people.
Crypto.com, one of the world’s largest cryptocurrency exchanges, also shared with 2,000 people on October 6. This figure represents about 40% of its staff. But a few months ago, in June, the company had already laid off 400 people.
Stripe, a payment processing company, is laying off 1,000 people, or 14% of its staff. It was November 3rd.
Even a crypto mining company like Core Scientific had to lay off 10% of its staff. Another, Compass Mining, cut its directors’ benefits before laying off 15% of its staff.
On June 24, 2022, BitPanda, one of the largest crypto exchanges in Europe, had to lay off 270 employees. Elsewhere in the world, in Latin America and Middle Eastmajor scholarships were to be shared with nearly 200 employees in total.
But the gold medal for layoffs goes to Meta Platforms (Facebook), which had to lay off 11,000 people, or 13% of its staff. However, several sectors were affected, not just his Metaverse sector. For some companies like Celsius Network, layoffs couldn’t save them from bankruptcy.
For its part, ConsenSys did not want to comment on this information. But we can still wonder how far these layoffs and this bear market will go. Can All Crypto Businesses Collapse? completely?
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