The crypto and tech industry has seen a slew of layoffs this week against a backdrop of tough market conditions, although on a positive note, some are bucking the trend.
Crypto companies, including crypto exchanges, venture capital firms and blockchain developers, have been forced to downsize to stay nimble amid the bear market. However, some have done the opposite by opening offices in new locations and markets.
It comes a few weeks after several high-level executives, such as OpenSea’s former CFO, Kraken’s co-founder Jesse Powell and Ripple Labs’ director of engineering have all made headlines for leaving or resigning from their roles in the space.
Stripe is cutting about 1,000 staff
Payments processor Stripe CEO Patrick Collison said in a Nov. 3 memo that 14% of the firm’s staff — about 1,000 employees — would be laid off, citing “inflation, energy costs, higher interest rates, reduced investment budgets and sparser start-up funding” as reasons for the cuts.
Collison added that it was “over-hired for the world we’re in,” and said Stripe was “too optimistic” about short-term growth in e-commerce, underestimating the impact of a wider market downturn and that its operating costs had grown too quickly.
The memo says the 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 payments startup released a crypto payout product for Twitter creators in April.
Dapper Labs cuts 22% of staff
Flow blockchain developer Dapper Labs made the decision on November 2 to cut 22% of its staff, affecting around 130 employees, according to a memo by founder and CEO Roham Gharegozlou.
Gharegozlou said the “macroeconomic environment” and the company’s growth from 100 to more than 600 employees in less than two years prevented the firm from being “as aligned, nimble and community-driven as we need to be.”
He said Dapper Labs has “streamlined and focused” its product strategy around a “more sustainable cost structure” and is looking at the skills it needs for the future when deciding who to lay off.
Digital Currency Group lays off 10% of staff: Report
Web3 conglomerate and venture capital firm Digital Currency Group (DCG) has let go about 10% of its workforce, according to a Nov. 1 Bloomberg report that saw 10 employees leave the company, bringing its headcount to a total of 66.
The cuts were reportedly part of a restructuring with Mark Murphy, DCG’s chief operating officer, also promoted to president, a spokesman said DCG had “made a series of internal changes” to position the company “for its next phase of growth”. which includes “streamlining”. ” of departments.
Cointelegraph contacted DCG to confirm the report, but received no response.
Galaxy Digital is reportedly eyeing a 20% reduction in workforce
Galaxy Digital, the crypto firm founded by Michael Novogratz, is also looking at a potential staff reduction of about 20% — as many as 75 jobs — according to a Nov. 1 Bloomberg report that cited sources familiar with the matter .
The company has neither confirmed nor denied the rumors, with a spokesperson saying only that the firm is “considering optimal team structure and strategy.” Yahoo Finance data shows that shares of Galaxy Digital are down about 76% year to date, along with a similar decline in crypto prices.
Galaxy Digital was contacted by Cointelegraph to verify the report, but did not receive a response.
BitMEX Makes Staff Cuts Amid Strategy Pivot
Crypto exchange BitMEX is also making layoffs about its employees in conjunction with a strategy to pivot away from spot trading and custody services and instead focus on crypto derivatives.
A BitMEX spokesperson told Cointelegraph on November 1 that an earlier report referring to 30% of staff being cut was “inaccurate and too high”, but with its focus back on derivatives trading, a “undesirable consequence” that “we had to make changes to our workforce.”
Coinbase CPO stops to take a break
The now-former chief product officer for crypto exchange Coinbase, Surojit Chatterjee, revealed in a Nov. 3 LinkedIn post that he had left his position at the company, saying “it’s time to get off the ride and catch my breath create.”
After almost 3 incredible years as CPO @mintbasis, I take a break and walk down. Thanks to the entire CB team – I look forward to continuing to serve @brian_armstrong and the executive team as an advisor. I shared some reflections here: https://t.co/y5qM9VaJ36
— surchatt.eth (@surojit) November 2, 2022
Chatterjee’s tenure at Coinbase lasted three years, but said he will continue to help the company by serving as an advisor to its CEO Brian Armstrong. He said the personal break came to spend more family time after his father was diagnosed with Alzheimer’s disease and his mother passed away unexpectedly.
An Oct. 28 Securities and Exchange Commission (SEC) filing by Coinbase says that with Chatterjee’s departure, its product, engineering and design teams are being “reorganized within a product group structure under which the leaders of such groups will assume responsibility for Coinbase’s product offerings.”
OKX opens in the Bahamas – plans to hire 100 locals
Meanwhile, crypto exchange OKX appears to be looking to hire staff, saying on November 3 that it plans to fill 100 jobs.
Related: Loyalty to strengthen crypto unit by another 25% with 100 new hires
The open positions will only be available to Bahamian local talent as OKX is registered as a digital asset business in the Bahamas, forming a new subsidiary to serve as the company’s regional hub and opening an office in the archipelago’s capital Nassau .
Paxos adds 130 heads in Singapore
At least 130 new hires based in Singapore will be added to blockchain infrastructure firm Paxos over the next three years, according to a Nov. 2 Bloomberg report, after its local unit received a license to offer digital token payment services.
Paxos co-founder Rich Teo said up to 180 could be brought in over the three years, bringing its headcount to about 200, a ninefold increase from its current team of 20 in the city-state.
In October, $4.5 trillion asset management firm Fidelity Investments told Cointelegraph it would hire 100 more people to bolster the firm’s growing digital assets division.
Fidelity, in a statement to Cointelegraph, said the firm is in a “unique position” to offer exposure to the “emerging” digital asset sector – as its reasons for pushing for more talent to join its Digital Assets arm to strengthen.