In the first two weeks of January, the crypto business has already experienced more than 1,600 layoffs.
Despite a wave of massive crypto layoffs to begin the new year, recruiting pros anticipate that personnel in technical and engineering areas, as well as senior management, will continue to find “high demand” for their abilities.
The first few weeks of 2023 have been difficult for crypto firms and their employees. As a result of continuous market volatility and uncertainty, the market has already seen over 1,600 crypto-related job layoffs in just two weeks.
However, not all departments have been slashed to the same extent.
According to Rob Paone, founder and CEO of crypto recruitment business Proof of Talent, technical and engineering professions are the most in-demand jobs, even during bear markets.
He stated that his firm is still seeing “high demand” for these activities, and that salaries are still “quite competitive” despite the fact that “bidding war type scenarios” no longer exist for these people.
According to Johncy Agregado, director of crypto recruitment agency CapMan Consulting, it’s usual for mid-level responsibilities to be reduced during a bear market, whereas senior duties “double or quadruple” during a down market.
Agregado noted that jobs such as chief technology officer and chief information security officer are generally safe since employees in those positions must keep the firm agile and “everything in order” as the market corrects itself.
Paone, on the other hand, stated that crypto firms typically cut positions first in areas such as in-house recruiting, customer support, compliance, and anything “non-revenue or product generating.”
While each company approaches bear markets differently, investor and podcaster Anthony Pompliano, who is also the founder of crypto recruitment firm Inflection Points, said that while each company approaches bear markets differently, he has historically seen “non-mission critical jobs” affected the most by layoffs.
These roles, according to Pompliano, include any roles outside of product, engineering, operations, customer support and management.
In response to the prolonged bear market, Pompliano stated that he has heard “many stories” of compensation cuts in smaller businesses, while others have frozen raises and annual bonuses.
Paone further stated that in some situations, even individuals in technical roles may not be able to avoid job cutbacks entirely, saying that crypto firms forced to make “deeper cuts” have had to shrink their engineering and product teams as well.
In recent months, a slew of crypto companies, mainly exchanges, have laid off employees in response to the market collapse.
Crypto exchanges Crypto.com and Coinbase both announced personnel reductions last week.
Crypto.com CEO Kris Marszalek announced on January 13 that the exchange had made the “painful decision” to cut its global workforce by “around 20%” due to adverse market conditions and recent industry events.
Meanwhile, Coinbase CEO Brian Armstrong revealed on January 10 that the exchange would let off 950 employees as part of a goal to slash operating costs by 25% during the ongoing crypto winter.
Binance, a cryptocurrency exchange, was one of the few to proclaim the contrary, hinting at a “hiring binge” in 2023 during a crypto conference in Switzerland.
However, Paone asserted that, while crypto layoffs have been prominent, they have not caused crypto workers to abandon the business.
