Crypto Companies Are Cutting Staff Amid Market Turmoil

The recent crypto stagnation forced several companies to lay down hundreds of companies. Companies like BlockFi and Crypto.com announced staff shrinkages due to “market conditions” having a “negative impact” on the economy.

As the sector dipped below $1 trillion on June 13, the crypto realm has shed more than 14% in USD value during the past 24 hours. The fall managed to push companies into making the hard decision to lay off their staff amid Bitcoin reaching a low of $22,600 on Monday.

“We’ve been through several tough days at BlockFi in the past, but today is probably the hardest,” the BlockFi co-founders wrote.

“Like many others in the tech industry, we have been impacted by the dramatic shift in macroeconomic conditions worldwide. We are in the gut-wrenching position of needing to reduce our headcount today. This is not a decision we take lightly and candidly is one that brings us great sadness.” the company added.

It turns out that the staff crisis has pushed BlockFi to cut ties with 20% of its staff.

Other crypto companies also join the headcount reduction

BlockFi’s decision comes in sync with other crypto companies, which have been reducing their workforce. For instance, Bitso announced layoffs and Buenbit cut staff back as well. Coinbase also revealed it had to “rescind a number of accepted offers,” while Gemini reduced its staff by 10%.

“Today is a painful day for BlockFi but more so for employees who we have to part ways with,” BlockFi added in a blog post, adding that the company is doing everything in its power to treat all of the impacted workforce “with the empathy and compassion that they deserve.”

Crypto.com also lays off its staff

Kris Marszalek, Crypto.com’s CEO, made a stunning announcement that the company would lay off a total of 5% of its staff, or roughly 260 people.

"Our approach is to stay focused on executing against our roadmap and optimizing for profitability as we do so," Marszalek wrote on June 11, adding that such events make it difficult for the company “to ensure continued and sustainable growth for the long term”.

Crypto.com’s decision comes after a series of heavy advertisement deals, including the rebranding of the iconic Staples Center in Los Angeles for $700 million.

The crypto market continues to sink

After the weekend’s market turmoil, the crypto sector witnessed yet another wave of negative price action. Bitcoin, the leading crypto asset to date, slipped yet another 7% to trade at $22,199.61 as of press time. The leading crypto even managed to sink as low as $20,950.82 but rebounded from the yearly low.

Ethereum’s fall was slightly less evident in the past 24 hours, but data from CryptoBrowser shows that the altcoin leader lost almost a third of its value in the past seven days, even reaching a yearly low of just over $1,000 per ETH.

Source: CryptoBrowser

However, some projects are making up for the losses over the past week, with Avalanche (AVAX), Shiba Inu (SHIB), and Chainlink (LINK) recording massive increases, given the market situation.