Layoffs to Continue In Cryptocurrency Space In 2023 With No End In Sight To Crypto Losses

Layoffs in crypto companies will continue in 2023 with no end to troubles in the virtual digital space.
Layoffs to Continue In Cryptocurrency Space In 2023 With No End In Sight To Crypto Losses

The Huobi crypto exchange has become the latest to announce mass layoffs in 2023 amid growing troubles and uncertainty in cryptocurrency.

Huobi on Friday said it would trim down at least 20 per cent of its workforce in the first quarter of 2023, highlighting the crisis in the crypto market as prices of most assets continue to slide downward.

The company told Reuters it would keep a "lean team," given the bearish market. Earlier, Tron founder Justin Sun alluded to Huobi's "structural adjustment" plan in a social media post.

Huobi had reportedly onboarded around 20,000 new members daily over the past three months.

Commenting on Huobi's membership drive, a Chinese crypto entrepreneur named Sun reportedly described the achievement as "a fire in the cold" despite a deteriorating macro climate.

In late November last year, crypto analytics platform CoinGecko ranked Huobi as the eighth-largest cryptocurrency exchange based on trading volume.

In another recent development, John Crain, the CEO of non-fungible token (NFT) marketplace SuperRare, said the company would reduce its workforce by 30 per cent due to the adverse market conditions. Crain's statement published on Twitter on Friday claimed that SuperRare hired more people during the NFT market's rapid expansion than it could sustain in the long run.

"During the bull run, we (NFTs) grew in tandem with the market," Crain wrote. "In recent months, it's clear that this growth was unsustainable. We 'over hired,' and I take full ownership of this mistake."

Crain said workforce reduction would ensure artists and collectors would continue receiving its services.

Job Cuts Continue

SuperRare joins an increasing number of crypto firms scaling back to survive the market. Coinbase sacked 11,000 workers in June. Shortly after, NFT market OpenSea cut 20 per cent of its staff. Crypto brokerages, trading firms, payment processors, and Web3 gaming studios have also cut jobs. Meta Platforms Inc fired 13 per cent of its staff in November across its applications and reality lab businesses.

According to a person familiar with the situation, cryptocurrency business Genesis has reduced its employment by 30 per cent in a second round of layoffs in less than six months as pressure mounts on leaders in the sector to make cost reductions in the wake of a downturn, Reuters reported.

After the collapse of the FTX crypto exchange in September, several businesses have gone bust, leading to a decline in investors' interest. Silvergate Capital Corp, a cryptocurrency-focused bank, on Thursday said it would reduce 40 per cent of its current workforce.

"As we continue to navigate the unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally," a spokesperson for the company confirmed.

Cryptocurrency companies fired thousands of people from their jobs and delayed expansion plans due to the turmoil over the past year. According to CoinDesk, some 26,000 people have lost their jobs.

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