2nd November 2024 – (Texas) The cryptocurrency sector is undergoing a major wave of layoffs as companies grapple with market pressures and seek to streamline operations. In a major restructuring effort, blockchain development firm Consensys has reduced its workforce by over 20%, affecting 162 employees, as confirmed by CEO Joe Lubin to Cointelegraph.
Similarly, crypto exchange Kraken has announced a workforce reduction of approximately 15%, equating to nearly 400 jobs. This follows a previous round of layoffs in November 2022, when the company cut 1,100 positions—30% of its workforce—due to adverse market conditions.
Decentralised exchange dYdX has also joined the trend, announcing a cut of 35% of its staff. In a statement, returning CEO Antonio Juliano indicated that the company requires a new strategic direction.
Nova Labs, the firm behind Helium Mobile, has reportedly laid off 36% of its workforce in a shift towards prioritising its core cellular business.
In related developments, Coinbase has reported disappointing earnings for the third quarter, resulting in a nearly 3.7% drop in its stock during after-hours trading on October 30. Revenue reached $1.13 billion—an 81% increase from the prior year—but fell short of analysts’ expectations of $1.26 billion. Earnings per share also missed forecasts, coming in at 28 cents versus the anticipated 45 cents.
In another noteworthy move, Reddit has sold off the majority of its cryptocurrency holdings, primarily Bitcoin and Ether, generating proceeds of $6.87 million in the third quarter. This sale was detailed in a recent filing with the US Securities and Exchange Commission.
Kraken is also making headlines with the appointment of new co-CEO Arjun Sethi amidst its restructuring efforts. Reports suggest that the exchange has laid off 15% of its staff, a move corroborated by unnamed sources.
Lastly, Circle has adjusted its fee structure for redeeming its USD Coin (USDC), increasing costs for large-scale redemptions. The new fees, which were introduced in response to rising liquidity demands, now start at 0.03% per transaction and can reach up to 0.1% for withdrawals exceeding $15 million, primarily impacting institutional investors and high-volume traders.