Crypto Firms Cut Nearly 3,000 Jobs in January Despite Bitcoin Rise

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Crypto companies tightened their purse strings in the first month of 2023, with at least 2,900 crypto employees released at 14 crypto companies in January.

The latest company to make layoffs is crypto infrastructure provider Prime Trust, which has reduced its workforce by a third according to reports.

The reduction would amount to around 100 employees cut, as Prime had 312 employees on LinkedIn at the time of writing.

Other recent cuts in the past few days include the layoff of 30 employees at crypto platform Matrixport according to a Jan. 27 Bloomberg report, while an earlier Jan. 23 report by The Information said about 100 employees had been fired from the crypto exchange Gemini. .

The biggest staff layoff for the month of January was initiated by crypto exchange Coinbase which reduced its workforce by around 950 employees on January 10.

Its peer exchanges Crypto.com, Luno and Huobi followed with reductions of around 500, 330 and 320 employees respectively.

Struggling crypto conglomerate Digital Currency Group (DCG) and its subsidiaries have also seen significant layoffs with 485 employees laid off in January alone as the company faces a financial crisis.

DCG-owned Luno saw the most layoffs, while DCG itself cut 66 employees, its loan subsidiary Genesis cut 63 jobs and its asset management company HQ Digital closed, affecting 26 jobs.

Related: Crypto Hiring Managers Reveal The Most Secure Jobs During Layoff Season

Rounding out the list, the 200 staff members were laid off from crypto bank Silvergate, the 110 employees were cut from the Blockchain.com exchange, and the 96 employees were laid off from MetaMasks’ parent company, ConsenSys.

Meanwhile, 20 staff members have been laid off from the SuperRare non-fungible token (NFT) market.

These staff cuts came despite Bitcoin (BTC)’s strong performance during the month, targeting near $25,000 as institutional demand continued to rise.

However, the large-scale crypto industry layoffs were not isolated. About 48,000 people in January alone were laid off from just four companies: Google, Amazon, Microsoft and Salesforce.

While some may believe there is more gloom to come, crypto hedge fund Pantera Capital believes there has never been a better time to start a blockchain business claiming that bear markets provide less noise and construction distraction.

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