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Several major cryptocurrency firms have announced layoffs. In total, around 450 individuals are affected—this represents between 10% and 25% of the workforce for most projects. One of the latest to report significant job cuts is the blockchain management fund Algorand, which has reduced its staff by 25%, equating to approximately 200 employees.
The layoffs at Algorand impacted the community management and development departments. The project team attributed the decision to the “uncertain global macroeconomic environment” and the overall downturn in the cryptocurrency market. The fund also noted the decline in the value of cryptocurrency assets. The native token ALGO is currently trading at about $0.09—down 98% from its peak in 2019.
Major cryptocurrency companies are compelled to cut costs to buy time and determine their next steps, explains Dan Escow, founder of the recruitment agency for the crypto industry, Up Top. The expert expresses skepticism that the layoffs are related to a large-scale replacement of the workforce with artificial intelligence.
In January, the number of new job openings at major crypto platforms was approximately 6.5 per day—an 80% decrease compared to the previous year, according to CoinDesk. During the crypto winter of 2022, large firms laid off over 26,000 employees, the publication reminded.
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In February of this year, Gemini Space Station (GEMI) announced the elimination of around 200 positions—about a quarter of its workforce. By mid-March, the percentage of laid-off employees at the company increased to 30%. In a letter to shareholders, Gemini explained its decision as a replacement of several staff members with artificial intelligence.
The mining company Block reported in February that it had reduced its workforce by more than 4,000 employees (40%). The company’s CEO and Twitter founder Jack Dorsey attributed the changes to the implementation of AI.
Earlier in March, OP Labs, which is developing the second-layer blockchain Optimism, laid off 20 employees. PIP Labs, behind the crypto project Story Protocol, cut 10% of its workforce. The analytics platform Messari, a provider of crypto data, announced its third round of layoffs in 2023 and changed its CEO. The exact number of employees laid off has not been disclosed.
On Thursday, March 19, the exchange Crypto.com reported a 12% reduction in its staff, which amounts to about 180 employees, replacing them with a neural network.
