BETTER THAN CORPORATIONS: LAYOFFS IN CRYPTO ARE ON THE RISE, STILL LOWER THAN IN OTHER INDUSTRIES

Last updated: June 20, 2025, 01:10 | Written by: Dan Larimer

The crypto winter has arrived, and it's bringing a chill wind of layoffs across the digital landscape.While the industry prides itself on innovation and disruption, it's not immune to the economic realities that affect all sectors. Crypto market sentiment not as bullish as 039;echo chamber 039; suggests, trader says A crypto trader argued that it is easy for crypto market participants to be convinced sentiment is one way or the other, while claiming that the sentiment is not that bullish currently.As Bitcoin's value plummeted from its all-time high, many crypto firms have been forced to adapt to changing market conditions and dwindling investor sentiment, resulting in significant workforce reductions.But before you write off crypto as just another unstable fad, it's crucial to put these job cuts into perspective. Top Crypto Investment News, Listings, Member Posts, Crypto Investment Daily Indices and moreCompared to the massive layoffs that have historically plagued traditional corporations, the crypto industry, despite its recent struggles, still fares relatively well. Companies aren't as quick to the layoff trigger these days. Why it matters: It's good news for workers. Layoffs are traumatic life events that can take years to recover from financially. And it's one reason the labor market has held up better than economists expected after the Federal Reserve started hiking interest rates.Are these layoffs in crypto a sign of the apocalypse, or simply a necessary correction? CNBC is the world leader in business news and real-time financial market coverage. Find fast, actionable information.How do they stack up against the long history of job cuts in traditional industries? IBM s layoffs in 2025 are still ranked as the highest in history, with 60,000 jobs cut. Citigroup, Sears, Roebuck Co, and the U.S. Army each cut over 50,000 jobs at different stages, but theseAnd what does this mean for the future of crypto and the wider economy? Layoffs in Crypto Are On the Rise, Still Lower Than in Other Industries Since Bitcoin hit its all-time high of $20,000, the dominant cryptocurrency has seen more than an 80 percent decline in value from that historic milestone over the past 12 months.This article explores the rising tide of layoffs in the crypto sector, comparing them to the titans of industry who have also wielded the layoff axe, and assesses the implications for the future.

The Crypto Layoff Landscape: A Winter of Discontent

The recent downturn in the crypto market has forced many companies to make tough decisions.Several major players have announced significant workforce reductions, impacting thousands of employees. CoinTelegraph: Better Than Corporations: Layoffs in Crypto Are On the Rise, Still Lower Than in Other Industries Featured Tuesday, Additional InfoHere's a look at some of the most prominent examples:

Kraken: This San Francisco-based crypto exchange has undergone two rounds of layoffs in 2025 alone. Better Than Corporations: Layoffs in Crypto Are On the Rise, Still Lower Than in Other IndustriesThe first round saw a 30% reduction in its global workforce, affecting approximately 1,100 people.A second round followed, impacting an additional 15%, or nearly 400 employees, including high-profile executives.
Consensys: This blockchain development firm, deeply involved in building applications on the Ethereum blockchain, reduced its workforce by over 20%. Desde que Bitcoin alcanz su m ximo hist rico de $20.000, la criptomoneda dominante ha experimentado un descenso de m s del 80 por ciento en el valor de ese hito hist rico en los ltimos 12 meses.CEO Joe Lubin emphasized a more rigorous approach to projects and a willingness to dissolve those that didn't show sufficient promise.

These examples highlight the vulnerability of crypto companies to market fluctuations.The rapid rise and fall of digital asset values can create a volatile environment where companies are forced to quickly scale up during boom times and then drastically cut costs when the market turns south.

Context is Key: Comparing Crypto Layoffs to Corporate Giants

While the layoffs in the crypto industry are undoubtedly concerning for those affected, it's important to remember that they are dwarfed by the massive job cuts that have occurred in traditional industries throughout history. The San Francisco-based crypto exchange wrote in a blog post: We re reducing our global workforce by approximately 1,100 people, or 30 percent, in order to adapt to current market conditions.Consider these examples:

IBM (2025): This tech giant holds the record for the largest single layoff in history, with a staggering 60,000 jobs cut.
Citigroup: This financial institution has implemented multiple large-scale layoffs, each involving tens of thousands of employees.
Sears, Roebuck & Co.: As retail giants face disruption, Sears saw significant layoffs in its history.
U.S. A wave of headcount reductions is sweeping the crypto industry. In a major restructuring, blockchain development firm Consensys reduced its workforce by more than 20%. Joe Lubin, CEO of ConsensysArmy: Even the military has been subject to major workforce reductions at different stages in history, shedding over 50,000 jobs at times.

These examples demonstrate that layoffs are not unique to the crypto industry. Given that ConsenSys invests and helps startups building applications on the Ethereum blockchain, Lubin also made it clear that the company would become far more rigorous with projects under their care and wouldn t hesitate to dissolve projects that may have looked promising at their inceptionThey are a common occurrence in all sectors of the economy, particularly during periods of economic downturn or industry restructuring.The key difference is the scale.While crypto layoffs affect hundreds or thousands, corporate giants often cut tens of thousands of jobs in a single move.It's also important to consider the relative size of the workforce. As the crypto market downturn rages on, companies within the space are also forced to adapt to changing market conditions and investor sentiment, leading to a series of layoffs across crypto firms. In this article, we will explore some of the recent high-profile layoffs that have hit crypto companies. 10 Most Recent Crypto Layoffs 1.A 30% layoff at a crypto exchange with 1,000 employees is different than a 10% layoff at a corporation with 100,000 employees.

Why Are Crypto Companies Cutting Jobs?

Several factors are driving the recent wave of layoffs in the crypto industry:

Market Downturn: The most significant factor is the dramatic decline in the value of cryptocurrencies. Layoffs have been on the rise in some US industries as tech and professional services companies grapple with slowing demand and mixed economic signals. Sandra Sucher, Frances Frei, and Maria Roche offer insights for leaders managing through the turmoil.As Bitcoin and other digital assets lose value, trading volumes decrease, and investor sentiment turns bearish. The cuts follow a series of layoffs at other oil and gas companies, including BP and natural gas producer EQT. CNN plans to cut 200 jobs. CNN is cutting staff in a bid to focus the business on itsThis reduces revenue for crypto exchanges and other related businesses, forcing them to cut costs.
Over-Hiring During the Boom: During the crypto boom of 2021, many companies aggressively expanded their workforces to capitalize on the surging demand. Alongside this important crypto feature is a common commitment to remaining decentralized; cryptocurrencies are typically developed by teams who build in mechanisms for issuance and other controls.However, this rapid growth often led to inefficiencies and redundancies, making layoffs necessary when the market cooled down.
Shifting Business Strategies: Some crypto companies are using layoffs as an opportunity to restructure their businesses and focus on core areas of growth. Top cryptocurrency prices and charts, listed by market capitalization. Free access to current and historic data for Bitcoin and thousands of altcoins.This may involve shedding non-core projects or streamlining operations to improve efficiency.
External Economic Factors: Broader macroeconomic conditions, such as rising interest rates and inflation, can also impact the crypto market and contribute to layoffs.

It's essential to understand that layoffs are not always a sign of failure.Sometimes, they are a necessary step for companies to survive and adapt to changing market conditions. Posted by u/Cointelegraph_news - 1 vote and no commentsIn the long run, these adjustments can make the industry more sustainable and resilient.

Navigating the Crypto Winter: Advice for Employees and Investors

The crypto winter can be a challenging time for both employees and investors.Here's some advice on how to navigate the current market conditions:

For Employees:

Prepare for the possibility of layoffs: While it's impossible to predict the future, it's always wise to be prepared.Update your resume, network with colleagues, and explore potential job opportunities in other industries.
Focus on your skills and experience: Highlight your most valuable skills and experience in your resume and cover letter.Consider acquiring new skills that are in demand, such as blockchain development or cybersecurity.
Stay informed: Keep up to date with the latest news and trends in the crypto industry. Kraken, one of the largest crypto exchanges, has undergone two rounds of layoffs. In 2025, it reduced its workforce by 30%, affecting 1,100 employees. Now, in 2025, the exchange has let go of an additional 15%, impacting nearly 400 workers, including high-profile executives like Technology Chief Vishnu Patankar and former Operations ChiefThis will help you understand the challenges and opportunities facing the sector and make informed decisions about your career.
Network, Network, Network: Attend industry events, connect with people on LinkedIn, and reach out to former colleagues. CoinTelegraph: Better Than Corporations: Layoffs in Crypto Are On the Rise, Still Lower Than in Other Industries Featured Tuesday, Increased job cuts in the crypto industry pale in comparison to the biggest corporate layoffs in historyNetworking can open doors to new opportunities that you might not otherwise find.
Consider a Career Shift: If you're concerned about the long-term prospects of the crypto industry, consider exploring career opportunities in related fields, such as fintech, cybersecurity, or data science.

For Investors:

Diversify your portfolio: Don't put all your eggs in one basket.Diversify your investments across different asset classes to reduce your risk.
Do your research: Before investing in any cryptocurrency or crypto company, do your own research and understand the risks involved.
Invest for the long term: Crypto investments are highly volatile.Be prepared to hold your investments for the long term and ride out the ups and downs of the market.
Manage your risk: Only invest what you can afford to lose.Never invest more than you're comfortable losing.
Stay informed: Keep up to date with the latest news and trends in the crypto market.This will help you make informed investment decisions.

The Future of Crypto: Will It Ever Recover?

The future of the crypto industry is uncertain, but there are reasons to be optimistic.Despite the recent downturn, the underlying technology behind cryptocurrencies – blockchain – remains promising.Blockchain has the potential to revolutionize many industries, from finance and supply chain management to healthcare and voting.As the technology matures and becomes more widely adopted, the demand for crypto-related services is likely to increase.

Moreover, the crypto industry is still relatively young.It's likely to experience further cycles of boom and bust as it matures.The current downturn may be painful, but it's also an opportunity for the industry to learn from its mistakes and build a more sustainable foundation for the future.Regulation, while often viewed with apprehension, could bring much-needed stability and legitimacy to the space.

Potential Long-Term Growth Factors

Increased Institutional Adoption: As major financial institutions begin to embrace cryptocurrencies, the industry will gain more legitimacy and attract more mainstream investors.
Development of New Use Cases: New applications for blockchain technology are constantly being developed.These new use cases will drive demand for cryptocurrencies and related services.
Increased Regulatory Clarity: As governments around the world develop clear regulatory frameworks for cryptocurrencies, the industry will become more stable and attract more investment.

Layoffs: A Broader Economic Trend

It's important to understand that while layoffs in the crypto industry are noteworthy, they are part of a broader economic trend.Many industries are currently facing challenges, including tech, media, and retail.Companies in these sectors are also implementing layoffs to cut costs and adapt to changing market conditions.

For example, CNN recently announced plans to cut 200 jobs, while oil and gas companies like BP and EQT have also implemented layoffs.These examples highlight the fact that layoffs are a common response to economic uncertainty and are not unique to the crypto industry.Factors such as rising interest rates, inflation, and slowing demand can all contribute to job cuts across various sectors.Even companies touted as ""recession-proof"" are not immune.These layoffs often indicate that companies are preparing for a possible recession or economic slowdown.

The Importance of Perspective

The news of layoffs in the crypto industry can be disheartening, especially for those directly affected.However, it's important to keep things in perspective.While the current downturn is undoubtedly challenging, the crypto industry still has the potential to grow and evolve.By learning from past mistakes, embracing innovation, and focusing on long-term sustainability, the industry can emerge stronger and more resilient than ever before.

Remember that the sheer scale of corporate layoffs in industries like manufacturing, finance, and even the military, dwarfs the reductions seen in the crypto space.This isn't to diminish the impact on individuals who've lost their jobs in crypto, but to illustrate that this is a common feature of the broader economy, not a sign of the sector's imminent demise.The resilience and innovation inherent in the crypto space, coupled with the enduring promise of blockchain technology, suggest that these current layoffs are more of a recalibration than a collapse.

Conclusion: Crypto Layoffs in Context

The current wave of layoffs in the crypto industry is undoubtedly a cause for concern, particularly for those who have lost their jobs.However, when viewed in the context of historical layoffs in traditional corporations and the broader economic landscape, the scale of the job cuts in crypto is relatively smaller.The crypto market's volatility, coupled with rapid growth during the recent boom, has contributed to the current situation.While the future of crypto remains uncertain, the underlying technology and the industry's commitment to decentralization offer hope for long-term growth.For employees, preparation, skill development, and networking are crucial.For investors, diversification, research, and a long-term perspective are essential.Ultimately, the current downturn may be a necessary correction that sets the stage for a more sustainable and resilient crypto industry.