FTX's bankruptcy could accelerate layoffs in the crypto industry in the coming months, experts warn. However, so far the situation hasn't been that bad. According to a recent CoinGecko's report, cryptocurrency companies rank tenth on the list of 10 sectors by technology startup layoffs from January 1 to November 13, 2022. Crypto firms axed only 4,695 jobs, compared to 18,486 falling in the consumer category.
Technology companies have been cutting staff throughout the year with massive layoffs taking place at Big Tech. Last Wednesday, Meta informed it plans to fire 11,000 employees out of over 70,000 worldwide – more than twice as much as the whole crypto industry sacked so far this year. At Twitter, the carnage, relative to total staff, has even been more epic. The new owner allegedly fired 80% of contract employees (4,400 out of 5,500) without a warning or a formal notice.
In the crypo sector, layoffs have been driven by the ongoing "winter," but recent events may speed up job cuts. "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," reads the report. This, however, doesn't interfere with the long-term trend.
According to Neil Dundon, the founder of the CryptoRecruit hiring agency, "layoffs have been consistent effectively following the same trend as crypto prices. FTX hasn't changed that broader trend albeit a tragic event," he said in a commentary for CoinTelegraph.
Fortunately, each crisis has a silver lining, and layoffs simply mark a transition period when qualified workers move from inefficient companies to those with a more adequate business vision. "There will be layoffs (...) but that will present opportunities for good projects to scoop up good talent which we are collecting," concludes Dundon.
