The crypto and tech industry has seen a slew of job cuts this week amid tough market conditions, although on a positive note some are bucking the trend.
Crypto companies, including crypto exchanges, venture capitalists and blockchain developers, have been forced to downsize in order to stay nimble amid the bear market. Some, however, have done the opposite, opening offices in new locations and markets.
It comes weeks after several high-profile executives, such as OpenSea’s former chief financial officer, Kraken co-founder Jesse Powell and Ripple Labs Director of Engineeringhave all made headlines for quitting or resigning from their roles in space.
Stripe cuts about 1,000 employees
Patrick Collison, CEO of payment processor Stripe, said in a Nov. 3 memo that 14% of the company’s workforce — around 1,000 employees — would be firedciting “inflation, energy costs, higher interest rates, shrinking capital budgets and sparser start-up funding” as reasons for the cuts.
Collison added that he was “overhired for the world we find ourselves in”, saying that Stripe was “too optimistic” about the near-term growth of e-commerce, underestimating the impact of a broader market downturn and that its operating costs were rising too rapidly.
The memo says headcount changes will be uneven across Stripe, and it’s unclear which departments will be affected or how it will affect the crypto side of its business. The start of payments released a crypto payment product in April for the creators of Twitter.
Dapper Labs cuts 22% of its workforce
Flow blockchain developer Dapper Labs made the decision on November 2 to cut its workforce by 22%, impacting about 130 employees in a note from founder and CEO Roham Gharegozlou.
Gharegozlou said the “macroeconomic environment” and the company’s growth from 100 to over 600 employees in less than two years has prevented the company from being “as aligned, agile and community-focused as we need to be.” being”.
He said Dapper Labs “streamlined and focused” its product strategy around a “more sustainable cost structure” and looked at the skills it needed for the future when deciding who to lay off.
Digital Currency Group lays off 10% of staff: Report
Conglomerate Web3 and venture capital firm Digital Currency Group (DCG) laid off about 10% of its workforce, according to a Nov. 1 Bloomberg report that saw 10 employees leave the company, bringing its workforce to a total of 66.
The cuts are believed to have been part of a restructuring with Mark Murphy, DCG’s chief operating officer, also promoted to president, a spokesman said DCG “made a series of internal changes” to position the company “for its next phase of growth” which included the “streamlining” of departments.
Cointelegraph contacted DCG to confirm the report but received no response.
Galaxy Digital is considering a 20% reduction in its workforce
Galaxy Digital, the crypto company founded by Michael Novogratz, is also considering a potential staff reduction of around 20% – up to 75 positions – according to a Nov. 1 Bloomberg report that said cited sources familiar with the matter.
The company neither confirmed nor denied the rumours, with a spokesperson saying only that the company was “considering an optimal team structure and strategy.” Data from Yahoo Finance shows Galaxy Digital shares are down about 76% year-to-date, alongside a similar drop in crypto prices.
Galaxy Digital was contacted by Cointelegraph to verify the report but did not receive a response.
BitMEX Makes Staff Cuts Amid Strategic Pivot
Crypto exchange BitMEX is also making withdrawals among its employees in conjunction with a strategy to move away from cash trading and custody services and refocus on crypto derivatives instead.
A BitMEX spokesperson told Cointelegraph on Nov. 1 that an earlier report citing 30% of staff being cut was “inaccurate and too high,” but with its return to derivatives trading, an “undesirable consequence” was that “we had to make changes in our workforce.
Coinbase CPO leaves for a breather
Surojit Chatterjee, the former product manager for crypto exchange Coinbase, in a November 3 LinkedIn post revealed he had quit his job at the company saying “it’s time to get off the ride and catch my breath”.
After nearly 3 incredible years as CPO @coinbase, I take a break and quit. Thanks to the whole CB team – I look forward to continuing to serve @brian_armstrong and the management team as an advisor. I shared some thoughts here: https://t.co/y5qM9VaJ36
— surchatt.eth (@surojit) November 2, 2022
Chatterjee’s stint at Coinbase lasted three years, but said he would continue to help the company by serving as an adviser to its CEO Brian Armstrong. He said the personal break comes to spend more time with family after his father was diagnosed with Alzheimer’s disease and his mother passed away unexpectedly.
An October 28 Securities and Exchange Commission (SEC) deposit by Coinbase says that with Chatterjee’s departure, its product, engineering, and design teams “are being reorganized into a product group structure in which the leaders of those groups will take responsibility for offerings. of Coinbase products”.
OKX opens in the Bahamas – plans to hire 100 locals
Meanwhile, crypto exchange OKX appears to be looking to recruit staff and said on November 3, it plans to fill 100 job vacancies.
Vacancies will only be available to local Bahamas talent as OKX has registered as a digital asset company in the Bahamas, forming a new subsidiary to serve as the company’s regional hub and opening an office in the capital of the archipelago, Nassau.
Paxos adds 130 head to Singapore
At least 130 new Singapore-based recruits will be added over the next three years to blockchain infrastructure company Paxos, according to a Nov. 2 Bloomberg report, after his local unit received a license offer digital token payment services.
Paxos co-founder Rich Teo said up to 180 people could be recruited over the three years, bringing his workforce to around 200, nine times larger than his current team of 20 in the city. -state.
In October, the $4.5 trillion asset management firm Fidelity Investments told Cointelegraph that it was set to hire another 100 people to bolster the company’s growing digital assets division.
Fidelity, in a statement to Cointelegraph, said the company was in a “unique position” to offer exposure to the “emerging” digital asset sector – as its reasons for pushing for more talent to bolster its Digital Assets arm.