Tech Layoffs Outnumber Crypto Cuts, but Not for Long

About 4,700 people in the crypto industry were laid off between Jan. 1 and Nov. 13, a new report shows

November 17, 2022 01:56 pm

Source: Shutterstock

Crypto layoffs make up only 4% of tech layoffs between Jan. 1 and Nov. 13., a new report from CoinGecko reveals.

Despite being featured extensively in news and media, the entire cryptocurrency sector laid off 4,695 people, as of Nov. 13, significantly fewer than the consumer technology and food technology sectors, which laid off 18,486 and 13,203 people, respectively.

Consumer technology cuts represent 15.6% of all tech layoffs — this number is likely driven by recent Big Tech staff slashes at Meta — which let go of 11,000 employees — and Twitter’s 3,700 employee culling following the arrival of Elon Musk as CEO.

Instant delivery companies that benefited from venture capital funding during the pandemic were responsible for many of the food technology layoffs, the report shows — Turkey-based Getir let go of 4,480 employees in May and other affected companies included GoPuff, Foodpanda and Delivery Hero, just to name a few.

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Of course, some of these companies fall into more than one sector.

Following the FTX implosion earlier this month, it is likely that the cryptocurrency space will see more layoffs in the coming weeks and months — besides the obvious cuts and resignations at FTX itself.

Large industry players are already being affected, with the potential to spillover into job losses.

Cryptoasset manager Multicoin Capital has lost more than 55% of its funds, Genesis put a halt to customer redemptions and new loan originations, and other funds with direct exposure to FTX are still surfacing.

Cryptocurrency asset management firm Ikigai revealed that the majority of the company’s funds had been on FTX, and when it tried to withdraw money, it could retrieve very little.

Internationally, one of the largest Japanese exchanges — Liquid Global — revealed that it would be halting withdrawals.

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