Protocol Labs, Chainalysis and Bittrex add to crypto layoff season

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Juan Benet, CEO of Protocol Labs, the parent company of Filecoin 

By Ciaran Lyons, Cointelegraph

4th February 2023 – (New York) Several crypto firms have made job cuts this week amid the ongoing crypto winter, retaining “impactful” employees as they prepare for a “longer downturn.”

At least 216 jobs were slashed between three crypto firms – open-source software laboratory Protocol Labs, blockchain data firm Chainalysis and U.S. cryptocurrency exchange Bittrex, with reductions of 89, 83 and 44 employees respectively.

FIL$5.57, announced the job cuts in a blog post on 3rd February stating that the company has had to focus its headcount “against the most impactful and business critical efforts.”

He stated that the company’s decision to cut “89 roles,” approximately 21% of its workforce, was to ensure it is well positioned to “weather this extended winter.”

Benet suggested that the company must “prepare for a longer downturn,” given it has been an “extremely challenging” time for the crypto industry.

Meanwhile Bittrex employees were informed by CEO Richie Lai over email on 1st February that the company has made a reduction to its workforce to “ensure the long-term viability” of the company.

The email was leaked via Twitter on 2nd February, in which Lai stated that despite the leadership team “working aggressively” to reduce expenses and increase efficiencies over the last several months, the efforts have not produced the “results necessary.”

Lai added that the market conditions have forced the company to reset their strategy and balance its “investments with the new economic environment.”

According to Washington State employment data on 2nd February it was revealed that Bittrex cut 83 jobs.

Maddie Kennedy, director of communications at Chainalysis, told Forbes on 1st February that those “primarily in sales” at the company were let go, as 44 of its 900 employees, approximately 4.8% of the workforce, were slashed.

These layoffs come after news that at least 2,900 staff were cut across 14 crypto firms in January.

Coinbase had the largest layoffs amongst those firms, cutting 950 of its staff on 10th January.

Meanwhile competitor exchanges Crypto.com, Luno and Huobi had reductions of approximately 500, 330 and 320 staff respectively.