The start of Crypto Winter does not only affect retail investors. Six of the largest cryptocurrency exchanges in the United States and Latin America have announced mass layoffs and changes to their hiring policies to adapt to new macroeconomic circumstances.
2TM, the company behind Mercado Bitcoin, has announced that it will lay off 12% of its 750 employees due to “changes in the global financial landscape”. Mercado Bitcoin is the largest crypto exchange in Latin America by trading volume.
“The scenario requires adjustments that go beyond reducing operating expenses, also requiring the layoff of some of our employees,” 2TM said in a statement. statement. “The process we conducted was guided by transparency and respect, to honor the legacy of every employee who has helped us get this far.”
Bitso lays off 10% of its staff, Buenbit lays off 45%
Last week, other major crypto companies LatAm took similar downward moves.
Bitso, Mexico’s largest exchange and Latin America’s second-largest crypto platform, announced last Thursday the cut of 80 employees amid tightening conditions affecting the industry.
Bitso had more than 700 employees when the measure was announced. The policy changes relate not only to downsizing but also to revamping the company’s operations. Overall, the company still has around 60 vacancies in strategic areas such as accounting, tax, legal advice, fraud detection and product and software development.
Buenbit, one of the leading cryptocurrency investment platforms in Argentina, had to take more drastic measures, laying off 45% of its staff, dropping from around 180 to 100 active workers.
Buenbit CEO Federico Ogue noted that the company had to redefine its strategy to have a bigger presence in the crypto industry of the future. He also pointed out that the management team has made its way after several months of evaluation.
“After a year 2021 of exponential growth for the tech industry, we find ourselves in a phase of global overhaul,” Ogue said in a statement. Twitter feed, “Given this new context, we have decided to reduce the workforce and suspend our expansion plan to focus exclusively on the operation of the countries where we are present today and maintain an autonomous and efficient structure.” he assured.
It’s also winter in the United States
In the northern hemisphere, two of the largest stock exchanges in the United States recently announced changes to their hiring policies, including reducing their staff.
Gemini, the cryptocurrency exchange owned by the famous Winklevoss twins, yesterday announced a dismissal of 10% of its staff in a bid to weather the crypto winter and maintain its long-term goals.
“After careful thought and consideration, we have made the difficult but necessary decision to part ways with approximately 10% of our workforce,” the Winklevoss announced on Thursday.
And shortly after Gemini’s announcement, Coinbase took its turn. The company had already announced its intention to slow down hiring. Yet this week he went even further, announcing the cancellation of job offers for new recruits who had not yet joined their positions.
“As these discussions evolved, it became clear that we need to take stronger measures to slow our workforce growth,” LJ Brock, Chief Human Resources Officer at Coinbase wrote in a blog post. “Adapting quickly and acting now will help us successfully navigate this macro environment and emerge even stronger, enabling healthy growth and innovation.”
Of course, it’s not just crypto firms that are making emergency adjustments. In April, Robinhood, a cryptocurrency and stock trading app, also laid off 9% of his teamfollowing a sharp slowdown in growth – a sign that winter is hitting stock markets, not just crypto.
Photo by Rythik on Unsplash.
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