FTX collapse could increase the number of layoffs in crypto sector

Analysts from CoinGecko and recruitment specialists believe that in the coming months the fall of FTX might lead to a greater number of layoffs in the crypto sphere.

According to a report published by CoinGecko, since the beginning of this year, crypto companies have already cut more than 4,600 employees. This is about 4% of the total number of layoffs in technology startups. Experts say that crypto layoffs will only increase, as the FTX bankruptcy will have a strong impact on the crypto sphere.

According to Neil Dundon, the founder and CEO of Crypto Recruit, FTX’s collapse may lead to the dismissal of some employees. However, the reduction of staff and the number of new jobs in the crypto industry will largely depend on prices of cryptocurrencies.

Kevin Gibson, the founder of Proof of Search, believes that at the moment it is difficult to predict exactly how the bankruptcy of FTX will affect the number of layoffs in the crypto sector. He said that one of his clients had already faced a situation when a company that had previously offered a job rejected him. According to Gibson, such situations will occur more often in the future.

Earlier, many crypto companies and platforms announced staff cuts before the long crypto winter. Among them are Coinbase, BlockFi, BitMEX, OpenSea, Gemini and Crypto.com . This decision was made by the CEOs in order to optimise work and maintain profitability.

At the same time, Binance plans to use crypto winter to strengthen the company’s market position and hire more employees.