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Crypto Startups Laying Off Employees Due to Market Conditions, But Picture Still Better Than Other Industries

December 18, 2018 13:01

The layoffs in cryptocurrency sector are on a rise. However, things are still better than other industries as growth of jobs in the sector is robust.

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The harsh conditions of cryptocurrency market have started taking a toll on the growth of cryptocurrency startups as well. The effect is clearly visible now, as major startups have announced business restructuring plans involving layoffs. Joe Lubin headed ConsenSys, for example, has announced a plan in which 13% of company’s staff will be laid off and many projects will be nixed. The plan, called ConsenSys 2.0, was revealed by himself in an email to employees earlier this month. He said in the email:

“We must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are. We now find ourselves occupying a very competitive universe […] to ‘succeed wildly’ […] we must recognize that what got us here will probably not get us there, wherever ‘there’ is.”

Anthony Pompliano, an investor in cryptocurrencies, summed up approach taken by Rubin as a “harsh but necessary action”. He said:

“Joe Lubin is a smart, ambitious guy. He has been at the forefront of many technology trends and built one of the most important companies in crypto. While unpleasant, it is encouraging to see him and his team making the hard decisions to put the business in a better position for future growth. Great leaders have to make the tough calls — I’m sure this one wasn’t easy.”

While ConsenSys has taken a lean and gritty approach to downsizing, Blockchain-based social network Steemit has been much more direct and drastic in its approach. It has announced to lay off 70% of its workforce due to severe market conditions and decline in returns from sales of STEEM tokens. Steemit runs on Steem blockchain, and in addition to layoffs it’s also planning some technical changes to reduce the operational costs. Steem once used to have a market cap of over $400 million, but today it has come down to $72 million.

Blockchain development jobs still on a rise

Despite these layoffs, however, a promising picture is emerging simultaneously. Blockchain and Bitcoin related jobs are still on a rise, which suggests that the effect of slump has still not been as worse as it remains in other industries. The overall outlook for the sector is looking positive as a 33% growth was observed for blockchain developer jobs in 2018, according to a study recently published by LinkedIn. Recently Facebook also listed five openings for blockchain related jobs on its career portal.

In short, those who’re being laid off due to cryptocurrency slump won’t have a difficult time finding the next job. That’s what makes the picture better than that of other industries.

Technology and business were my core interests, so it wasn't surprising that I got interested in cryptocurrencies, which operate at the intersection of both these things. Now I live my passion by trading cryptocurrencies and covering Cryptocurrency news. You can connect with me on Facebook to learn more about me. :)

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