ConsenSys, an Ethereum-based software development company, could lay off up to 100 employees. According to people involved in the case, it could be more. But this dismissal at ConsenSys is not the only one in the crypto industry. Indeed, several companies have had to get rid of part of their staff.
ConsenSys layoff under bear market
The current bear market is not the first, but it will have been the longest. Moreover, analysts estimate that the market will be down for a long time. In this context, it seems that everyone is losing money, even software development companies. Thus, to stay afloat, ConsenSys will have to part with 100 employees, or even more. Note that the company only has 900. We learned from CoinDesk that since April 2022, nearly 27,000 people have lost their jobs in the crypto industry. The redundancy plan is being finalized at ConsenSys, and it could be official in the coming days.
Failing to go into debt to continue operating, companies choose to reduce payroll. The immediate consequence is a contraction of industry innovations and developments.
Other massive layoffs in the crypto industry
To get a precise idea of the phenomenon, here is a small list of most spectacular layoffs. The phenomenon had started with the exchange BitMEX which had separated from 75 employees in April 2022. On November 30, 2022, Kraken fired 1100 people, or approximately 30% of its staff.
Additionally, on January 10, 2022, Coinbase announced the layoff of 950 employees. Recall that last June, the company still parted with about 1100 people. In total, Coinbase will have fired over 2,000 people.
Crypto.com, one of the largest cryptocurrency exchanges in the world, also parted ways with 2,000 people on October 06. This figure represents about 40% of its staff. But a few months earlier, in June, the company had already fired 400 people.
Stripe, a payment processing company, is laying off 1,000 people, or 14% of its staff. It was November 3.
Even a crypto mining company like Core Scientific had to fire 10% of its staff. Another, Compass Mining, scaled back its directors’ benefits before laying off 15% of its staff.
On June 24, 2022, BitPanda, one of the largest crypto exchanges in Europe had to lay off 270 employees. Elsewhere in the world, in Latin America and in Middle Eastmajor exchanges had to part ways with nearly 200 employees in total.
But the gold medal for layoffs goes to Meta Platforms (Facebook), which had to lay off 11,000 people, or 13% of the staff. However, several sectors were affected, not just its Metaverse sector. For some companies like Celsius Network, layoff could not save them from bankruptcy.
For its part, ConsenSys did not wish to comment on this information. But one can still wonder how far these layoffs and this bear market will go. Could All Crypto Businesses Collapse completely ?
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Layoffs of nearly 100 employees planned at ConsenSys?