Companies Firing And Hiring Employees | Crypto And Jobs
There is an inverse relationship between the jobs and the market meltdowns, whether in traditional markets like in 2009 or now in the crypto market. companies try to minimize expenditure by cutting off their staff, which is the normal practice in critical conditions. But if the company has a strong cash flow model and has been spending wisely during the good market conditions is able to retain its staff even in critical market conditions and some even manage to get new employees onboard during such conditions. In this article, we will look into some of the crypto companies that are hiring employees and those that are firing.
Companies That Are Firing Employees
Of course, the number of companies that are firing employees is far larger than those hiring, that is because many are not very good at handling market crashes. So before looking into the companies that are hiring let's go through the companies that are firing first:
The very renowned company name in the crypto space is Coinbase. It is one of the largest cryptocurrency exchanges contributing a huge percentage of the trading volume. Regardless of the popularity and the leadership in the crypto space, COinbase could not retain its employees and had to let go of a considerable portion of the staff.
According to the company, they have overhired in the last bull run and that is why they have been cutting off their workforce and simultaneously freezing the hiring. Coinbase has fired around 1,100 of its employees which is around 18% of its total workforce.
Another major and one of the oldest players in the crypto space since 2014 has recently cut down its workforce. Actually, Gemini was one of the first crypto companies to announce the firing of its employees. In the initial announcement, the company announced that it will be cutting off 10% of its workforce due to uncertain market conditions. But then the report came that Gemini has fired 68 of its employees which is around 7% of the total workforce.
BlockFi is one of the major lending and staking platform in the crypto space. BlockFi was one of the companies that got hit by the Terra-UST crashes and the company suffered a huge amount of loss during that period of time. And in order to sustain further, the cost-cutting was inevitable, and that resulted in the firing of employees.
BlockFi has fired 600 of its employees which is around 20% of its total workforce. And with firing that number of employees, BlockFi became the company with the highest number of fired employees.
Companies That Are Hiring Employees
Companies with the proper management of the cash flow during the good time are the ones who take advantage of the critical market conditions. Some companies with proper management of cash are not hiring more employees even in critical market conditions.
It is clear that FTX came up as one of the strongest crypto companies in the past couple of years. It has shown a good relationship[ with the regulators around the world as well as conducted strategic partnerships with the major entities in the crypto space. And also FTX has captured a considerable percentage of the total trading volume which puts FTX as the second largest crypto exchange in the space, which also resulted in a huge growth in the revenue, and because of that, they are now using that cash to strengthen their workforce.
Recently, the CEO of FTX Sam Bankman-Fries has cleared that the company has no plans to freeze the hiring process as they have been hiring carefully even during the bulls run. It is estimated that the current count of employees at FTX is around 250. Sam has also posted a tweeter thread on this topic:
Binance is the world's largest cryptocurrency, contributing over half the trading volume. Binance is very well known for its strategic investments as well as its spending. It is very impressive to see that Binance is handling the cash flow so nicely even with that huge amount of complexities. And due to that the company can now increase its workforce and take advantage of the crypto winter.
Binance is not just continuing the normal hiring process but they are recruiting over 2000 new employees in its workforce. With the number of hiring, Binance is one of the companies with the highest number of hiring. CZ, the CEO of Binance announced the hiring process through his Twitter handle:
Above is the short list of the companies that are hiring and firing their employees. It is tragic to see such a number of people losing their jobs but that's the sad reality of market meltdowns. Companies with poor money management have no option other than reducing the cost of operations and cutting off the employees is one of the old tricks in the book.
But yes this shows us the list of companies that are good with their expenditures and can sustain as well as carry on the normal working even during critical situations. And those are the ones that stay longer in the game.
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