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The Crypto battle of talents – a surge of firings and hirings.

With the turmoil which has triggered a massive trading downturn, major digital asset exchanges are laying off hundreds of workers, as part of their effort to rein in costs amidst the volatile market conditions.

The layoffs began a day after the price of Bitcoin fell sharply, leaving companies in a state of confusion and panic. Unfortunately, giants like Coinbase opted for this tactic, making it clear that they would be extending their hiring freeze for the foreseeable future and repealing a number of accepted offers.

Exchanges and Layoffs

In fact, Coinbase has reported a 35% drop in total revenue, prompting the board to lay off 18% of staff (nearly 1,100 employees), isolating them from company systems effective immediately.

According to eFinancialCareers, a Coinbase member said that he has spent a lot of time in banks and has seen this happen frequently. He said, first, you ask for voluntary redundancies, then you make some cuts on the edges, then you cut hard. He added that he is not convinced this is over but while banks are no strangers to layoffs, they always keep the long-term consequences in mind, and Coinbase, with its mixed message about not cutting then cutting and not rescinding deals then rescinding, didn’t seem to have that – the next time they tried to hire from the banks, no one would want to join them. He even said that it’s a shame and if anything, Coinbase could benefit from more TradFi staff.

Another former employee mentioned that Coinbase fired him and he was frustrated but not surprised.

Crypto.com CEO Kris Marszalek also announced that the Singapore-based exchange, which recently received a license to operate in Dubai, will lay off some 260 workers (5% of its workforce). Another major platform, Gemini Exchange, confirmed last week that it would lay off 10% of its staff, and crypto lending platform BlockFi said it will cut around 20% of its workforce.

Furthermore, Rain, the first cryptocurrency exchange in the region, decided to adopt this strategy, knowing that it has faced many obstacles lately, such as the entry of larger platforms like Binance in local markets, CoinMena reaching out to some of its important clients and a large number of new traders, including the lawsuit of BITMEX in America, Rain’s main investor during that time.

However, it has become clear that some of the dismissals were a mistake of over-employment. The message came from Coinbase CEO Brian Armstrong, who said that these actions are necessary as a result of rapidly changing macroeconomic factors, the critical need to control costs during the crypto crisis, and the fact that he had grown Coinbase too fast since 2021, an unforgivable mistake that cost employees their jobs and their source of survival.

Exchanges and recruitment

This shows that laying off employees has now become a usual practice among exchanges, which will supposedly help them get through the crypto winter. However, not all companies comply. For example, Binance, the world’s largest cryptocurrency exchange, is looking to recruit around 2,000 employees for both on-site and remote roles, ranging from business verticals, and editorial to technology development.

Likewise, Kraken, the fourth largest exchange by daily volume, announced that it will hire more than 500 employees despite the market decline.

Best time to invest in skilled labor

Now, considering that only 1% of developers in the world are capable of developing blockchain, isn’t it strange that these companies are giving away talent to their competitors? In other words, now is the best time to invest in skilled labor, as laying them off could be the final nail in the coffin.

From traders to developers, marketers to business developers and strategists, the crypto space needs a variety of talents to function and move forward. For this reason, laying off employees to cut costs would not be a smart move, as companies will hand out amazing talents on a silver platter to their competitors.

There are so many perks that come with hiring employees right now, many of them listed above. For this reason, even though the market is going through a very tough phase, it is always important to anticipate and plan, because there will always be sunshine after the rain.

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