The consequences of cryptozima - why companies had to part with their employees.

The consequences of the crisis in the crypto industry have had a negative impact not only on investors, but also on crypto companies and exchanges themselves.

And one of the main markers of this is the waves of mass layoffs that swept through almost all known crypto giants, not to mention smaller market participants. Companies had to cut costs and reduce financial risks, and although employees are considered one of the main components of the functioning of any project, many of them still lost their jobs.

For example, Brian Armstrong, the head of the Coinbase crypto exchange, traditionally one of the leaders of the crypto market, stated the need to reduce the operating costs of the platform by a quarter at once. The result of this was a reduction of 1,1 thousand people (18%) in June last year, followed by the dismissal of another 950 employees. Armstrong called this decision extremely difficult, but necessary to maintain the stability of the company in difficult times of crisis. That is, as a result, about 4 thousand people remained from the original staff at Coinbase. Management believes that this number of personnel will be enough to maintain the necessary functionality of the company and at the same time reduce its costs to get out of the red risk zone.

Cryptocurrency Platform Crypto.com I was also forced to say goodbye to 10 thousand employees. The reasons for such truly frightening and alarming figures are still the same - negative events in the industry that could not be overcome in other ways. CEO Chris Marshalek said that after the sensational collapse of FTX, confidence in the industry has been significantly undermined, and although it will be absolutely restored, it will require considerable efforts and sacrifices.

One of the largest crypto exchanges Kraken did not stand aside either - its co-founder and CEO of the exchange, Jesse Powell, announced the need to lay off 1,100 people, which amounted to 30% of the staff. And again, the situation with FTX pushed the exchange to such a negative decision, not least. Many investors preferred the withdrawal of funds from the platform to trading and investment, as they began to fear the effect of a house of cards and the loss of their funds. However, it is worth noting that Kraken preferred to say goodbye to its employees on the most human terms - all those dismissed were compensated for 16 weeks of work.

All these events and news of the crypto market make it clear that the crypto winter was not in vain for anyone - the management of crypto exchanges had to make unpopular decisions, and many of their employees had to look for a new job. Despite this, the general mood of market participants at the beginning of 2023 can be called optimistic - according to their forecasts, the crypto industry will begin to recover after a powerful collapse and eventually reach new, even higher speeds.

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