Cryptocurrency exchanges and companies are slowing down their aggressive hiring policies following admissions by several that crypto prices have triggered a “crypto winter”.
Because of this, the companies have confirmed that they will put current recruitment efforts on hold and Gemini went a step further to confirm that it will be scaling back its own workforce by at least 10%. This is a considerable drop in the reach and ambition of such companies.
“After much thought and consideration, we have made the difficult but necessary decision to part ways with approximately 10 percent of our workforce”, Gemini said in an official statement.
Another reason for Gemini’s decision has been geopolitical tension which made the industry a little more exposed to rapid value swings and more unpredictability.
Coinbase was not much later to announce a similar move. However, Coinbase is keener on retaining existing team members and will not be reducing its head count immediately.
Regardless, the company is dealing with a $430m loss in the first quarter of 2022, which is a significant issue for the exchange.
But it’s not just the biggest ones that are trimming the fat. Argentinian crypto exchange Buenbit cut 45% of its workforce in May, meaning that the company lost around 100 company professionals.
Latin American exchange Bitso has made 80 layoffs, and Brazilian crypto exchange 2TM let go of around the same number of employees as well.