Another Crypto Company Is Laying Off 40% Of Its Employees To Survive The Bear Market

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Octopus Network – a multi-chain crypto network supporting Web3 applications – is to lay off 40% of its employees to ensure its survival amid the ongoing crypto winter.

Adverse macro factors have taken their toll on many other industry leaders who have taken similar action in recent months. Some examples are Coinbase, CryptoCom, Huobi, Bybit, BitMEX and others.

This winter is different from the others

In a recent letter, Louis Liu – Founder of Octopus Network – announced that they were going to refactor the team to deal with unfavorable market conditions. He also argued that the current bear market is somewhat different from previous ones:

“The current winter is the third winter I’ve been through, the first two being 2014-2015 and 2018-2019 and I see this winter is very different from others.”

Liu believes crypto will be one of the hardest hit industries, where high risk and heightened volatility will continue to rule. He also thinks the majority of Web3 startups won’t endure tough times, predicting the negative trend will last at least another year.

As such, Octopus Network (which supports the development of Web3 blockchain applications) has applied its “voluntary separation program” and will lay off 40% of its total workforce. In addition, the remaining 18 people will have to agree on a salary reduction agreement:

“So we are moving forward with the voluntary departure program. To date, approximately 40% of members (12 out of 30) will leave the core team as a result of the program. The remaining team members will take a 20% pay cut and the team token bonus will be suspended indefinitely. »

Near Foundation is the “exclusive strategic investor” and “mother channel” of Octopus Network. Liu said the partnership between the two entities remains strong, adding that NEAR and IBC will become the “two cornerstones” of Octopus’ new strategy.

2022: a year of layoffs and bankruptcies

Several cryptocurrency companies have downsized their divisions, driven by the market downturn and declining interest in digital assets.

Major US-based exchange Coinbase laid off 18% of its employees in June, BlockchainCom laid off 25%, while NFT marketplace OpenSea laid off 20% of its employees.

Companies including Argentinian cryptocurrency platform Lemon Cash and Australian trading platform Swyftx have gone even further, laying off 38% and 40% of their employees respectively.

In recent months, many companies have also been unable to weather the turmoil and eventually halted operations or filed for bankruptcy. Such examples are former giants Celsius Network, Three Arrows Capital (3AC), Vauld, Core Scientific and others.

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