• 23,600 crypto employees lost their jobs in 2022, making it the highest number of crypto layoffs ever recorded.
• Coinbase, Kraken, Bybit, Amber Group, Huobi, and Bitpanda were among the top firms with the highest number of layoffs.
• Crypto exchanges have been hit harder than other crypto firms due to the dip in trading volume as a result of the bear market.
The crypto industry has been hit hard by the bear market, leading to massive layoffs across the sector. In 2022, a total of 23,600 crypto employees lost their jobs, making it the highest number of crypto layoffs ever recorded in a single year.
Coinbase, one of the largest crypto firms, had to lay off 1160 employees, which accounted for 4.6% of the total crypto layoffs in 2022. Kraken also had to implement massive layoffs, with about 1100 employees losing their jobs, which was about 30% of its workforce. Bybit was not far behind, with 1,020 employees losing their jobs. Amber Group had to lay off 800 employees, while Huobi and Bitpanda had to lay off 300 and 270 employees, respectively. Other firms such as Snap, BlockFi, and Gemini also had to implement layoffs.
It is evident that crypto exchanges have been hit harder than other crypto firms due to the impact of the bear market. Most of these exchanges survive on transaction fees generated on their respective networks. As such, the decline in trading volume due to the bear market has had a massive effect on these exchanges.
Fortunately, the crypto industry is beginning to show signs of recovery as the market starts to stabilize. However, it remains to be seen how long it will take for the industry to fully recover from the effects of the bear market.