The crash of cryptocurrency exchange FTX and possible resulting contagion could lead to an acceleration in layoffs at crypto companies in the coming months, recruiting specialists warn.
A Nov. 14 report from cryptocurrency data aggregator platform CoinGecko found that As of November 13, the cryptocurrency space had seen 4,695 layoffs in 2022 so far, representing 4% of staff cuts across all “tech startups.”
However, the authors of the report caution that Crypto layoffs could rise in the coming months as the “full shock” of the FTX flash crash takes effect:
“With the FTX crash since November 2 and its full impact on the cryptocurrency space still unfolding, more layoffs in the crypto space could follow in the months ahead.”
Speaking to Cointelegraph, the founder of CryptoRecruit, Neil Dundon argues that while the FTX events will cause some layoffs, they have not changed the broader trend that recruitment in the crypto space follows crypto prices.
“The layoffs have been consistent; they are effectively following the same trend as cryptocurrency prices. FTX has not changed that broader trend, tragic event though it is,” he said, adding:
“There will be layoffs because of it, but that will present opportunities for good projects to take on good talent, which we are picking up.”
kevin gibsonfounder of recruiting company Proof of Search, he was less optimistic, sharing that he had a candidate who was going to start work today, but that his offer was “withdrawn” during the first call with the company.
Gibson said it was difficult to comment on how FTX’s collapse will play out as it is “changing daily”, but said his candidate’s experience “will not be an isolated incident”.
Companies across the cryptocurrency sector have already suffered a series of layoffs throughout the year. as a result of the market downturn.
Among the most recent job cuts in the sector are the layoff of 1,000 employees at payment processor Stripe, the 22% layoff of blockchain developer Flow Dapper Lab, and the layoff of 10% of venture capital firm Digital Currency Group. . All layoffs were effective in early November.
It was also reported that the investment firm focused on digital assets Galaxy Digital was considering a 20% cut on November 1.
Coinbase is understood to have cut another 60 employees on November 10, according to Yahoo Finance.
CoinGecko’s latest report follows an earlier report from Nov. 4, which looked at the cities most affected by cryptocurrency layoffs.
At the top of the list was San Francisco -headquarters of Silicon Valley, one of the largest technology and innovation centers in the world-, followed by Dubai, New York and Singapore.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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