Crypto Sector Sees Record High Layoffs in 2022, Coinbase and Kraken Lead

• In 2022, 23,600 employees lost their jobs in the crypto sector, representing the highest number of layoffs ever recorded in the industry.
• Coinbase, Kraken, Bybit, Amber Group, Huobi, and Bitpanda were among the firms with the highest number of layoffs.
• The bear market had a greater impact on crypto exchanges, as trading volume decreased significantly, leading to a decrease in transaction fees.

The crypto sector has seen a significant number of layoffs in 2022, with the number of employees losing their jobs reaching an all-time high. According to reports, 23,600 individuals were discharged from their jobs in the industry as of December 9th, making it the highest number of crypto layoffs ever recorded in a year.

Leading the list of firms with the highest number of layoffs is Coinbase. The digital asset platform let go of 1160 employees, accounting for 4.6% of the total crypto layoffs of the year. Kraken followed closely, with the crypto exchange laying off 1100 individuals, representing a 30% reduction in its workforce. Bybit didn’t fall much behind, with 1,020 employees losing their jobs during the year. Amber Group, a digital asset firm, also suffered a significant setback, as it carried out 800 discharges within the year. Huobi and Bitpanda, two other prominent crypto firms, weren’t unaffected either, with the former recording 300 layoffs, and the latter 270. Other firms on the list of highest layoffs include Snap, BlockFi, Gemini, and others.

The bear market has had a greater impact on crypto exchanges, as the decrease in trading volume has led to a decrease in transaction fees. This has forced crypto exchanges to scale back their expansion plans, resulting in a significant number of layoffs.

It is important to note, however, that the crypto sector is not the only one affected by the bear market. Other industries, such as traditional finance and stock markets, have also seen their own share of layoffs due to the downturn. As the markets recover, it is likely that the number of layoffs in the crypto sector will decrease, and the industry will begin to recover again.