Crypto Firms’ Layoffs in February Record Decline Compared to January

Crypto companies’ layoffs recorded a significant slowdown in February compared to layoffs in January, Cointelegraph reported.

In February, 570 crypto employees were dismissed compared to about 2,850 employees in January. The job cuts happened in at least 12 companies over the past 28 days, but the figures show that there are no triple-digit crypto exchange layoffs like what happened in January in crypto firms like Crypto.com, Huobi, and Coinbase, but it came in the double-digits.

Crypto analytics companies Elliptic and Messari did the most recent layoffs by cutting 10% and 15% of staff, respectively.

An Elliptic official said his company’s decision to lay off 20 jobs came to reduce the operating expenses. Also, Messari Founder Ryan Selkis defended, in a tweet, his firm’s decision to lay off 27 employees because of “market headwinds” and an attempt to restructure the internal teams.

Moreover, blockchain analytics company Chainalysis announced it cut 44 jobs out of 900 employees, who represented 4.8% of its workforce.

The layoffs also reached the NFTs company during the past month. Polygon Labs, the Ethereum scaling platform, has cut around 100 jobs or 20% of its workforce, a decision was explained by its co-founder Sandeep Nailwal as an attempt to unify all its internal teams under Polygon Labs.

Vancouver-based Web3 company Dapper Labs has laid off 20% of its full-time employees after the first wave of layoffs happened in November. Dapper Labs CEO Roham Gharegozlou said the job cuts came as a part of the company’s restructuring to bolster its efficiency and focus.

On February 22, Australia’s largest crypto-gaming startup, Immutable, announced that it would be laying off nearly 11% of its staff.

A crypto expert elaborated that these layoffs are happening in all tech companies, not only in crypto firms. According to data from layoff tracker Layoffs.fyi, as many as 24,572 employees were laid off across 129 tech companies in February, down from 84,414 across 268 tech companies in January.