The cryptocurrency and tech industry saw a series of staff cuts this week amid challenging market conditions, although on a positive note, some are bucking the trend.
Crypto companies, including cryptocurrency exchanges, venture capital firms, and blockchain developers, have been forced to cut headcount to remain agile in the bear market. Some, however, have done the opposite, opening offices in new locations and markets.
It comes just weeks after several high-level executives, such as the former chief financial officer of OpenSea, Kraken co-founder Jesse Powell and Ripple Labs technical director have all made headlines for exiting or resigning from their roles in space.
Stripe cuts around 1,000 employees
Patrick Collison, CEO of the Stripe payment processor, said in a November 3 statement that 14% of the company’s staff – roughly 1,000 employees – would be fired, citing “inflation, energy costs, higher interest rates, budgets. of reduced investment and startup financing ”as reasons for the cuts.
Collison added that it was “expropriated for the world we are in”, saying Stripe was “too optimistic” about e-commerce growth in the short term, underestimating the impact of a broader market downturn and that the its operating costs have grown too rapidly.
The memo states that staffing changes will not be uniform across Stripe, and it is unclear which departments will be affected or how they will affect the crypto side of its business. The payments startup released a crypto payment product for Twitter creators in April.
Dapper Labs cuts 22% of staff
Flow blockchain developer Dapper Labs decided on November 2 to cut 22% of its workforce, impacting around 130 employees in a note from founder and CEO Roham Gharegozlou.
Gharegozlou said the “macroeconomic environment” and the company’s growth from 100 to over 600 employees in less than two years have prevented the company from being “as aligned, agile 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 looked into the skills needed for the future when deciding who to lay off.
Digital Currency Group fires 10% of staff: Report
Conglomerate Web3 and venture capital firm Digital Currency Group (DCG) have laid off about 10% of its workforce, according to a November 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 spokesperson said that DCG “made a number of internal changes” to position the company “for its business. next phase of growth “which included the” rationalization “of departments.
Cointelegraph contacted DCG to confirm the report but received no response.
Galaxy Digital is reportedly seeing a 20% drop in the workforce
Galaxy Digital, the cryptocurrency firm founded by Michael Novogratz, is also considering a potential staff cut of around 20% – up to 75 positions – according to a November 1 Bloomberg report citing sources familiar with the matter.
The company has neither confirmed nor denied the rumors, with a spokesperson only saying the company is “considering the optimal team structure and strategy.” Data from Yahoo Finance shows that Galaxy Digital shares have fallen roughly 76% year to date, along with a similar drop in cryptocurrency prices.
Galaxy Digital was contacted by Cointelegraph to verify the report but received no response.
BitMEX makes staff cuts during the strategy pivot
Cryptocurrency exchange BitMEX is also making withdrawals among its employees in combination with a strategy to move away from spot trading and custodial services and focus on crypto derivatives instead.
A BitMEX spokesperson told Cointelegraph on November 1 that a previous report citing the 30% staff cut was “inaccurate and too high”, but with its focus again on derivatives trading, an “undesirable consequence. “was that” we had to make changes in our workforce “.
Coinbase CPO closes to take a break
The now former chief product officer of the cryptocurrency exchange Coinbase, Surojit Chatterjee, in a post on LinkedIn on November 3, revealed that he had left his position at the company saying “it’s time to get out of business and catch my breath”.
After almost 3 incredible years as a CPO @coinbase, I’m taking a break and I’m resigning. Thanks to all of the CB team, I’m looking forward to continuing to serve @brian_armstrong and the executive team as a consultant. I have shared some thoughts here: https://t.co/y5qM9VaJ36
– surchatt.eth (@surojit) November 2, 2022
Chatterjee’s stint at Coinbase lasted three years, but he said he would continue to help the company by serving as an advisor to its CEO Brian Armstrong. She said the personal break comes to spend more time with the family after her father was diagnosed with Alzheimer’s and her mother died unexpectedly.
An Oct. 28 Securities and Exchange Commission (SEC) filing of Coinbase states that with Chatterjee’s departure, its product, engineering and design teams “have been reorganized within a product group structure under which the leaders of such groups will take responsibility for Coinbase’s product offerings. “
OKX opens in the Bahamas: plans to hire 100 premises
Meanwhile, cryptocurrency exchange OKX appears to be trying to raise staff and said on Nov.3 it plans to fill 100 jobs.
Related: Loyalty to strengthen the cryptographic unit by another 25% with 100 new hires
Open positions will only be available to local Bahamas talent as OKX has registered as a digital asset business in the Bahamas, forming a new branch that will serve as the company’s regional hub and opening an office in the capital of the archipelagic nation, Nassau.
Paxos adds 130 heads to Singapore
At least 130 new Singapore-based hires will be added over the next three years at blockchain infrastructure firm Paxos, according to a Bloomberg report dated November 2, after its local unit received a license to offer digital token payment services.
Rich Teo, co-founder of Paxos, said that up to 180 employees could be brought in over the three years, which would increase his headcount to around 200, a nine-fold increase from the current team of 20 in the city-state. .
In October, Fidelity Investments, a $ 4.5 trillion wealth management firm, told Cointelegraph that it will hire 100 more people to strengthen the company’s growing digital assets division.
Fidelity, in a statement to Cointelegraph, said the company was in a “unique position” to offer exposure to the “emerging” digital asset sector as reasons to push more talent to strengthen its Digital Assets arm.