The Huobi crypto exchange has become the latest to announce mass layoffs in 2023 amid growing troubles and uncertainty in cryptocurrency.
Huobi on said it would trim down at least 20 percent of its workforce in the first quarter of 2023, highlighting the crisis in the crypto market as prices of most assets continue to slide downward.
John Crain, the CEO of non-fungible token (NFT) marketplace SuperRare, said the company would reduce its workforce by 30 percent due to the adverse market conditions. Crain’s statement published on Twitter on Friday claimed that SuperRare hired more people during the NFT market’s rapid expansion than it could sustain in the long run.
During the bull run, we (NFTs) grew in tandem with the market, Crain wrote. “In recent months, it’s clear that this growth was unsustainable. We ‘over-hired,’ and I take full ownership of this mistake.
SuperRare joins an increasing number of crypto firms scaling back to survive the market. Coinbase sacked 11,000 workers in June. Shortly after, the NFT market OpenSea cut 20 percent of its staff. Crypto brokerages, trading firms, payment processors, and Web3 gaming studios have also cut jobs. Meta Platforms Inc fired 13 percent of its staff in November across its applications and reality lab businesses.
Cryptocurrency business Genesis has reduced its employment by 30 percent in a second round of layoffs in less than six months as pressure mounts on leaders in the sector to make cost reductions in the wake of a downturn.
After the collapse of the FTX crypto exchange in September, several businesses have gone bust, leading to a decline in investors’ interest. Silvergate Capital Corp, a cryptocurrency-focused bank, on Thursday said it would reduce 40 percent of its current workforce.
Cryptocurrency companies fired thousands of people from their jobs and delayed expansion plans due to the turmoil over the past year, some 26,000 people have lost their jobs.