With the beginning of the New Year, the crypto market’s reputation has started to recover. The entire industry is growing stronger and many are hoping that it will reach back to its older levels.
Crypto Layoffs are Decelerating
This is when the layoffs data coming in from the cryptocurrency industry has started showing promising figures.
The layoff data is proving that the cryptocurrency industry is now in the recovery phase. This is proven by the number of layoffs that have been reduced in the month of February.
According to the layoffs data from the cryptocurrency industry, the number of layoffs has reduced tremendously in the past month.
The number of layoffs recorded in the month of February was much lower than the layoffs recorded in the previous (January) month.
The report shows that in the month of January, the total number of employees laid off from the crypto industry was 2,850. Then comes the month of February where the number of layoffs recorded was just 570.
It goes to show that in January, 2,280 more employees were fired by the cryptocurrency industry compared to the month of February.
This goes to show that the companies are no longer fearing the increase in costs versus the revenues and profits. With the recovery of the majority of cryptocurrencies, the profits of the companies have started to rise as well.
Data Shared by the Major Crypto Tracking Firms
Major crypto tracking firms have shared their findings pertaining to the job cuts that were imposed by the firms within the crypto industry.
The data collected and shared by the firms shows that the majority of the layoffs were carried out by 12 prominent entities from the crypto industry.
In the past 28 days, these 12 companies have carried out most of the layoffs. The terminations announced by these companies are of high significance and their figures are what matter the most.
No Triple-Digit Layoffs
Although there were layoffs reported from the crypto industry, they were not triple-digit at all. The companies only carried out terminations in double-digit figures.
Back in January, it was major exchanges and platforms such as Huobi, Crypto.com, and Coinbase that had carried out huge terminations.
In that particular month, these prominent exchanges had carried out triple-digit layoffs.
The report further reveals that most of the layoffs carried out by the firms in the crypto industry in February were from four major departments.
These were the digital asset platforms, software development firms, blockchain, and blockchain analytics firms.
Although the layoffs were conducted in other sectors as well within the crypto industry these were the sectors where most of the layoffs were recorded.
Firms with Highest Layoffs in February
In February, the majority of the layoffs were announced by two major firms. These firms are Messari and Elliptic.
Messari announced in February that it was to cut off 15% of its overall employees. As for Elliptic, the layoffs announced were 10%.
Reason behind Layoffs
Ryan Selkis, the founder of Messari took it upon himself to announce layoffs of their staff in the month of February. He made the announcement about the job cuts on February 23.
He claimed that they want to proceed with the restructuring of their company. The restructuring they have planned is for the internal teams in their departments.
On top of that, the company is facing major headwinds due to the market downtrend. This has led to the company making the difficult decision of laying off its employees.
Messari announced the termination of 27 employees from their company.
Elliptic also made a similar announcement back on February 24. It announced the termination of 20 employees giving reasons that they had to do it because of the operating expenses.
They have been dealing with many operating expenses and reducing their headcount is what they had to do.