11-17-2022 icon

FTX crisis to likely heighten staff layoffs in the crypto space

By Lucy Adegbe

With the adverse effect of the FTX crisis still being felt, a number of players in the industry have sent out a notice concerning the climbing rate of retrenchment in the coming months.

The crash of the major crypto trading protocol FTX and its possible impact in all parts of the digital currency industry could result in massive layoffs across digital exchanges in the later months, recruitment experts caution.

According to a recent Monday information from the global largest independent digital currency statistics aggregator CoinGecko, the digital currency industry has recorded 4,695 layoffs of staff from January to November 13, 2022. This data accounts for over 4% of total employees in the various “technology startups.”

Amid such figures, the informants have further noted that the number of layoffs would likely intensify in later months with the “full impact” of the FTX crisis being felt.

CryptoRecruit owner Neil Dundon pointed out during a Cointelegraph interview that although the FTX collapse might be justification for some cuts in employees, the general trend remains that the crypto company employment rate is proportional to digital currency market value.

Global Web3 payment solution Stripes recorded a recent cut in staff by 1,000 followed by the user-focused flow on-chain creator Dapper Lab’s 22% reduction in employees.

Galaxy Digitals was allegedly considering a 20% reduction in its workforce as at November 1st.

Yahoo Finance published Coinbase’s move to layoff 60 employees the previous week.

A November 4th CoinGecko analysis placed San Francisco at the top amongst cities that have been most influenced by the digital industry cut in staff.