There has been a lot of news about crypto layoffs during this bear market. However, they represent a very small percentage of staff cuts in the wider tech sector.
In a report released on Nov. 14, CoinGecko revealed that layoffs in the crypto sector made up 4% of the overall tech sector for 2022.
The report added that just 4,695 crypto sector employees had been let go as of Nov. 13. This placed the cryptocurrency sector in the tenth position for layoffs across the technology industry in 2022.
Over 100,000 people in the tech sector lost their jobs in 2022. However, salacious mainstream media headlines make the crypto situation appear much worse than it is.
Tech Giants Axing Staff
The consumer technology sector was top for axing staff, with 18,486 employees laid off so far this year. This gives the sector a 15.6% share of all technology layoffs.
This figure includes the high-profile layoffs at Meta (formerly Facebook) and Twitter. Earlier this month, Mark Zuckerberg’s social media firm axed a whopping 11,000 employees. This was around 13% of its entire workforce representing nearly 60% of all consumer tech layoffs this year.
One tech company fired more than double the total of all crypto layoffs this year.
One of Elon Musk’s first moves, when he took over Twitter, was to cut staff. An estimated 3,700 people were let go, representing 20% of the consumer tech total.
Other tech giants to cut staff and freeze hiring include Apple, Amazon, Alphabet (Google), Microsoft, and Stripe.
While the crypto layoffs figure looks good in comparison, CoinGecko did issue a warning of more to come.
“With the collapse of FTX since November 2 and its full impact on the cryptocurrency space still unfolding, further cryptocurrency layoffs may occur in the months to follow.”
The most recent is digital asset investment firm Valkyrie Investments which has let go of roughly 30% of its small workforce.
Last week, Bloomberg reported that Coinbase had axed a further 60 of its staff.
Ripple Bucking Crypto Layoffs
Last week, BeInCrypto reported that Ripple Labs was still hiring despite the bear market. Company CTO David Schwartz reminded FTX employees that “Ripple is always hiring.”
According to the U.S. Bureau of Labor Statistics, “technical services” are among the areas of highest growth. However, things are not likely to fully turn around in the tech sector until the macroeconomic clouds clear sometime next year (hopefully).
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