FTX collapse could see crypto sector layoffs accelerate

While the full impact of FTXs collapse is still unfolding, some have already warned of an increase in layoffs to come in the months to follow. 4366 Total views 39 Total shares Listen to article 0:00 News The fall of crypto exchange FTX and potential resulting contagion could lead to an acceleration of crypto-company layoffs in the coming months, recruitment specialists warn.

A Nov. 14 report from crypto data aggregator platform CoinGecko found that as of Nov. 13, the crypto space has seen 4,695 employees let go in 2022 so far, presenting 4% of staff cuts across all technology startups.

However, the authors of the report warn that crypto layoffs could increase in the coming months when the full impact of FTXs sudden collapse takes effect: With the collapse of FTX since November 2 and its full impact on the cryptocurrency space still unfolding, further cryptocurrency layoffs may occur in the months to follow.

Speaking to Cointelegraph, CryptoRecruit founder Neil Dundon argues that while FTXs events will cause some layoffs, it hasnt changed the broader trend that crypto recruitment follows crypto prices.

Layoffs have been consistent effectively following the same trend as crypto prices. FTX hasnt changed that broader trend albeit a tragic event, he said, adding: There will be layoffs because of it but that will present opportunities for good projects to scoop up good talent which we are collecting.

Kevin Gibson, the founder of recruitment firm Proof of Search, was less optimistic, sharing that he had one candidate that was due to start employment today but had his offer pulled during the first call with the company.

Gibson said it was hard to comment on how the FTX collapse will shake out as its changing daily but said his candidates experience will not be an isolated incident.

Companies across the crypto sector have already undergone a number of layoffs throughout the year as a result of the market downturn.

Among the most recent staff cuts in the industry include payment processor Stripes layoff of 1,000 employees, Flow blockchain developer Dapper Labs 22% cut and venture capital firm Digital Currency Groups 10% layoff. All layoffs took effect in early November.

Digital asset-focused investment firm Galaxy Digital was also reported to be eyeing a 20% cut on Nov. 1.

Coinbase is understood to have cut another 60 staff on Nov. 10, according to Yahoo Finance.

Related: Tech talent migrates to Web3 as large companies face layoffs

The latest CoinGecko report follows an earlier Nov. 4report,which looked into the cities most impacted by cryptocurrency layoffs.

At the top of the list was San Francisco home to Silicon Valley, one of the worlds largest technology and innovation hubs which was followed by Dubai, New York City and Singapore. #Blockchain #Cryptocurrencies #Business #Adoption #Job #Markets #Data #FTX Related News What is impermanent loss and how to avoid it? Lets move on from FTXs collapse and get back to the basics Institutions moving very, very fast into crypto Coinbase exec Binance Proof-of-Reserve pledge gains support following FTX crisis SBF tells investors FTX needs $8B in emergency funding: WSJ