The crypto ecosystem is facing headwinds as its path corrects the challenges of the past year. In order to better balance our product offering with demand, we have made the difficult decision to reduce operating costs and the number of employees to make the company right.
Blockchain.com currently still has 280 employees, after starting with 160 members at the beginning of 2021.
The company added that all affected employees will receive severance packages. However, the package varies depending on the country where the employee lives.
Crypto companies that have cut their workforce
The industry as a whole has already started from the beginning until 2022, which is even until the beginning of 2023. Some of the biggest crypto companies are also reducing their workforce significantly.
Earlier this week, Coinbase, one of the world’s most popular exchanges, announced plans to lay off a fifth of its current workforce, which will cut 950 jobs.
Kraken, another crypto platform, also announced that it will adopt a cost-cutting strategy after closing its operations in Japan. He added that shutting down the Japanese operation could leave 30% of the current workforce unemployed.
Recently, another exchange, Crypto.com, announced plans to reduce its workforce by 20% to find ways to overcome the industry crisis that has worsened due to the fall of FTX.
Crypto.com is headquartered in Singapore, and this is the second round of layoffs due to the exchange previously laying off 250 employees in 2022. This means that more than 2,000 positions have been cut by Crypto.com.
A Ray of Hope By Binance
Crypto exchange Binance continues to battle the turbulent times the industry has witnessed. In a recent development, the exchange has received a license to operate in Sweden. Additionally, the exchange has been hiring while other exchanges have significantly reduced their workforce.
Recently, Binance CEO Changpeng Zhao (CZ) announced that the exchange plans to increase its workforce by 15%-30%.
Binance will hire twice as many employees as last year, as the exchange hired nearly 5,000 employees last year. Binance has also acquired licenses in seven countries in the past two years, which has saved labor on the exchange.