Coinbase and Other Firms That Have Laid Off Their Staff in 2023
- Crypto companies have resorted to laying off their employees to survive the bear market.
- Companies like Coinbase are facing tough times with regulators and reduced activities.
It is no longer news that the crypto world has suffered major setbacks over the last year. Bitcoin and Ethereum are miles from their all-time highs. Additionally, reputable crypto firms such as FTX, Voyager, and Terra have all filed for bankruptcy in the last year. Meanwhile, exchanges like Coinbase are also far from their best. These events have led to a decline in investors’ presence and market activities.
Despite being in a new year, the market is far from getting better, and this has forced crypto projects to make vital decisions for their short-term and long-term survival. Some of these decisions have seen some crypto companies shut down their operations while others are forced to file for bankruptcy protection. However, some other companies, like Coinbase, chose to reduce their headcount and continue their operations at reduced costs. Here are 4 major platforms that laid off their staff in 2023.
Genesis
Crypto lender, Genesis was one of the first projects to reduce its headcount in 2023 and laid off 60 people (about 30% of its staff strength) in January. Genesis, like some of the rivals on this list, has previously laid off about 20% of its staff in 2022.
Huobi
Huobi has been in the news for several reasons lately. However, very little has been said about the platform’s impressive performance. Instead, Huobi, like Coinbase and the rest, has been on a quest to survive the bear market and has already announced plans to lay off 20% of its staff.
Blockchain.com
Blockchain.com is one of many firms that suffered great losses from the fallout of crypto hedge fund Three Arrows Capital’s collapse. Blockchain.com has been on a survival quest since then, which has included laying off some employees. The company already laid off over a hundred workers in 2022 and announced plans to let go of another 110 employees (28%) in January.
Coinbase
So far, 2023 has been a difficult year for Coinbase, a crypto trading platform. Apart from being accused of selling unregistered securities by the SEC, Coinbase has seen a huge slump in its market activities. As a result, the company has embarked on several rounds of layoffs, including a 20% round announced in January.
It remains unclear if these companies will slash their staff strength again if the bear market continues. But, it is certain these companies will do all they can to survive.
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