Crypto winter triggers avalanche of layoffs in 2023; Blockchain.com cuts 28% jobs

Cryptocurrencies and other crypto assets have endured a rather long crypto winter all through 2022.

Amid an ongoing spree of layoffs globally, cryptocurrency brokerage firm Blockchain.com announced that it would slash 28 percent of its workforce, or about 110 employees, owing to the ongoing market conditions impacting the crypto economy.

The layoffs come after Blockchain.com was forced to cut about 150 staff in July as the firm grappled with a $270 million hit on loans it made to failed hedge fund Three Arrows Capital, as per reports.

Also read: What crypto’s 2022 timeline tells us about its future

“The crypto ecosystem is facing significant headwinds as its course corrects from the challenges of the last year,” a Blockchain.com representative told CoinDesk. “To better balance product offerings with demand, we’ve made the difficult decision to reduce operating costs and headcount to rightsize the company."

Also read: Crypto startup funding falls to lowest level in almost two years

Blockchain.com is now said to have a staff of only 280, having grown from 160 employees at the start of 2021. All impacted employees are receiving severance packages, the details of which vary by country, the company said.

Moreover, Coinbase on January 10 announced plans to lay off 950 employees in a bid to cut its operating expenses by about 25 percent quarter-on-quarter (Q/Q), co-founder Brian Armstrong said in an official blog post.

The company will also be shutting down several projects where "we have a lower probability of success", he said.

Also read: Coinbase to let go 20% of its workforce; shut down several projects