Huobi, Superrare, And Genesis Among Firms To Announce Job Cuts
Last year, many crypto giants were forced to cut down on their workforce to cope with mounting losses. These layoffs seem to have followed the digital asset industry into 2023, with a handful of popular web3 firms declaring job cuts over the last week.
Much to the relief of crypto investors and traders, 2023 has gotten off to a rather good start. Most cryptocurrencies in the top 100 list by market capitalisation are in the green year-to-date (YTD), and a majority of these coins have even posted double-digit gains. However, the cryptoverse is still reeling from the disasters of 2022. Last year, many crypto giants were forced to cut down on their workforce to cope with mounting losses. These layoffs seem to have followed the digital asset industry into 2023, with a handful of popular web3 firms declaring job cuts over the last week.
Tag along as we tell you more about these firms and their proposed layoffs.
Huobi wants a ‘lean team’
Huobi, the eighth-largest crypto exchange in the world, announced plans to reduce its workforce on January 6. According to reports, the exchange will be axing 20 percent of its employees in the coming months. This could result in as many as 220 employees losing their jobs as Huobi currently employs around 1,100 staff members.
According to reports, the job cut was conveyed to employees through an internal memo. Justin Sun, a Huobi board member and founder of Tron, later announced the same to Reuters, referring to the move as a “structural adjustment” taken to keep the exchange “lean” during the ongoing crypto winter.
The layoffs are yet to be implemented, with Huobi stating that they will be spread across the first quarter of 2023. Rumours around Huobi’s insolvency issues and potential layoffs have been doing the rounds for a few months now. Colin Wu, a prominent crypto reporter, also tweeted about cancelled bonuses and slashed salaries toward the end of December 2022. However, while Sun initially rubbished these reports, Huobi officially announced the layoffs on Friday.
Around the same time as Huobi’s layoffs came to the fore, $85 million worth of cryptocurrencies also left the exchange. This is after insolvency fears led customers to withdraw their funds from the exchange.
Genesis is at it again
One day before Huobi, the popular crypto brokerage firm, Genesis, announced that it would bid farewell to 30 percent of its workforce. The move would result in approximately 60 employees losing their jobs.
The firm cited “unprecedented industry challenges” as the reason for the difficult decision, stating that it was necessary “to move our business forward.” This is the second round of job cuts for Genesis after the firm slashed its workforce by 20 percent in August 2022. In addition, Genesis’ then-CEO, Michael Moro, also stepped down at the time.
SuperRare is not having a super time in 2023
SuperRare is a popular marketplace for buying and selling Non-fungible tokens (NFTs). It is a well-known platform in the NFT space, competing closely with top NFT marketplaces such as OpenSea and Rarible. However, since the NFT market tanked by over 65 percent throughout the previous year, NFT marketplaces are in a difficult spot at the moment. And the latest firm to face the bitter cold is SuperRare.
John Crain, the CEO of SuperRare Labs, announced that the company is planning to lay off almost 30 percent of its workforce. Crain explained that the move would help “rightsize” the company after over-hiring has left it with a surplus workforce.
He further mentioned that he takes complete accountability for the aggressive expansion of the company, accompanied by the excess hiring of employees, which unfortunately led to this situation. At the same time, he tried to instil optimism as he said the company is focusing on grander, more innovative projects for Web3 and digital art, which will lead to more work opportunities for artists and creators.
Silvergate Bank cuts jobs, drop blockchain-based project
On January 5, crypto-focused bank, Silvergate, announced that it would be slashing 40 percent of its workforce. Around 200 employees could lose their jobs through this move and the company is also expected to abandon some of its projects, including a blockchain-based payment solution.
Silvergate has been reeling from the crypto winter. For instance, the company’s shares plummeted 88 percent in 2022. Moreover, crypto deposits slipped to $3.8 million in Q4 of 2022, a stark drop from the previous quarter, which saw deposits worth nearly $12 million. Like SuperRare, Silvergate also blamed the layoffs on a rapid expansion spree. The firm had acquired surplus staff that it could not sustain given the “economic realities facing the digital asset industry today.”
Gate.io is also reportedly slashing its workforce
Crypto exchange, Gate.io, is also rumoured to be cutting down on its workforce, according to Colin Wu, the same reporter who speculated trouble at Huobi. As per Wu’s tweet from January 6, the exchange could be axing 40 to 50 percent of its staff. He also goes on to state that the employees will be provided with one month’s additional salary as compensation. While these reports have not been confirmed, Wu claims that Gate responded to his request for comment, calling the move a “normal optimisation.”
Conclusion
There is no denying that the cryptoverse is in a bad place at the moment. We have witnessed top companies such as Coinbase, Binance, Kraken, and others laying off staff throughout the previous year and the has trend spilt over into 2023 as well. However, nothing lasts forever, and the global crypto community is hoping that this phase will also pass in the coming months.
