Layoffs are on the rise in the midst of crypto winter Hao Jin was so convinced about the potential of cryptocurrencies that he quit his job at Oracle in April to accept a second offer at Coinbase. Jia was among the many employees who received emails last week from Coinbase rescinding job offers. Jia also lost her visa.
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CNN Business informed
him that he was an international student and must keep his visa current. “Coinbase abruptly changed its course after initially planning to hire as many as 2,000 employees in the coming year. They canceled offers and put a freeze on hiring. 18% of their workforce was laid off.
Coinbase CEO Brian Armstrong pointed out the possible recession and rapid growth in an email he sent Tuesday to employees. “Coinbase’s sudden hiring slump mirrors a wider trend in crypto. Many workers joined these companies in the hope that cryptocurrency would be the next big thing.
Kris Marszalek
from Crypto.com announced Saturday that the Singapore-based exchange would lay off approximately 260 employees or 5%. BlockchainFi, a cryptocurrency lending platform, also announced last week that it would reduce 20% of its workforce.
According to companies’ public statements, the reductions were necessary in order to address changing economic conditions and rising inflation. Bitcoin traded at just over $20,000 on Wednesday, a drop from its November record of almost $69,000.
Armstrong stated
that we are in a recession after a decade-plus economic boom. Some crypto executives are still trying to prove that the market has long-term potential. Executives in the industry insist that crypto always bounces.
Tyler Winklevoss and Cameron Winklevoss told employees that constraint could be the mother and father of innovation and that they were open to suggestions for how they could help them. Its trajectory is unpredictable and not gradual.
A fast-growing industry is putting a halt to These sudden cuts were shocking for many workers, and have cast doubts on the industry’s future
“I was so happy to get this job. A Coinbase graduate said that it feels almost like he or she is grieving the loss. Because he or she was concerned about career consequences, he or she spoke anonymously. “
Although some of these workers might be engineers and are still in demand at other companies, they are faced with the challenge of trying to find work in a sector that is suffering. Challenger Gray and Dec reported that tech companies laid off more than 4,000 workers in May. This is a 781% increase in job cuts from January to April, compared to January to April.
This is not just a problem for workers but also for crypto startups around the globe. Bitso has more than 5,000,000 users in Latin America. Bitso fired 80 workers in May due to the market dip. Many of the affected workers are recent hires.
“Executives fear losing money, which is something I fully understand,” Murillo Bargas, a former employee of Bitso, said to CNN Business. It’s not news to anyone that the crypto winter is here.
“I was in the exact same room as an employee who was hired one week ago. He did all the onboarding stuff. He was fired the following week,” Lucas Ferreira, a former Bitso employee, told CNN Business.
CNN Business was informed that Bitso’s spokesperson stated that the company’s workforce decisions were made in order to support customers and implement our strategy. “Binance is one exception to this layoff trend. Binance posted a tweet by Changpeng Zhao on
Wednesday revealing that it had 2,000 positions. Zhao seemed to be mocking the spending by crypto startups like Crypto.com and Coinbase. He said that it was difficult to say no to Super Bowl ads, stadium name rights, large sponsorship deals, or other big-ticket items a month ago.
“We enter the cryptocurrency-winter from an extremely strong position, and there is no way that it could ever leave the crypto–winter in a less favorable place,” Brian Shroder, Binance’s US subsidiary said to CNN Business. “
It is not known when the crypto-winter will be over. Shroder said, “That’s one the best parts about crypto. It will end next week. We could stay for longer than a year. “
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