crypto strategy

Near Project’s Octopus Network Lays Off 40% of Its Staff Amid Crypto Winter

Octopus Network, a network of decentralized application chains built natively on the NEAR protocol, has announcement that it will be “refactored” to adapt to current market conditions.

As part of its refactoring process, the Octopus network will lay off around 40% of its team, or 12 out of 30 members. The remaining staff will also be subject to a 20% pay cut, while their symbolic bonus team will be suspended indefinitely.

According to Louis Liu, the founder of the Octopus network, despite having experienced previous crypto winters, “this winter is very different from others”. Liu said he expects this “current crypto winter to last at least another year, possibly much longer,” adding that “most Web3 startups won’t survive.”

To survive the crypto winter, the founder also shared that in addition to layoffs and pay cuts, the network will have to undergo a change in strategy; which would involve condensing operations, while focusing on building with NEAR and IBC as cornerstones of the new strategy.

Related: Crypto Layoffs Trigger Mixed Community Responses

In recent months, many companies have had to lay off staff and make difficult decisions to ensure their survival. In December, the cryptocurrency exchange Bybit announced a second round of layoffs to try to survive the bear market. Previously, the number of Bybit employees had grown from a few hundred to over 2,000 in two years.

In the same month, an Australian crypto exchange called Swyftx has also cut its staff by 35% in preparation for what he called a “worst-case scenario”. Swyftx laid off a total of 90 employees. Alex Harper, the company’s CEO, said that although it has no exposure to FTX, the company was “not immune” to the fallout from FTX’s collapse.

Further rounds of layoffs could potentially hit the crypto workforce if current market conditions continue to decline.