Bear Market Layoff Effects Still Lingering Throughout Cryptocurrency Companies and Businesses

2019 has brought a significant improvement to the crypto space so far, at least as far as the prices are concerned. Of course, the damage done by the 2018 crypto winter is still far from being nullified, and there are still consequences to be felt to this day, especially when it comes to crypto-related companies.

Many of them were forced to lay off their staff. In some cases, the layoffs were minor. In others, they are extremely aggressive. Despite the crypto recovery, there were multiple firms that went through major layoffs even now, in 2019. The price recovery has still not reached businesses, and many of these firms would otherwise experience significant losses. Indeed, many are feeling them regardless of layoffs. Here are some of the firms that needed to reduce staff in 2019, despite the fact that the situation is getting better.

1. Bitmain Reduces Workforce

Bitmain surprised everyone with their late 2018 message, which said that early 2019 would see a significant staff reduction. This came as a rather grim twist, especially due to the fact that the firm is known for its crypto mining. The company is currently still rather strong, and they confirmed that they would be hiring for some key positions. As for auxiliary positions, they are expected to become less important in the future. However, it is still unknown how many people were included or are about to be included in the company's layoff.

2. Huobi Layoffs Mirror Bitmain

Huobi announced a similar plan, sending a nicely-worded announcement that it will fire those who do not contribute enough to be considered crucial. Core positions will still see new employees being appointed in time, however. But, the decision to reduce staff does not seem to have damaged the company in any way. Similarly to Bitmain, it is not known how many workers that may include.

3. Steemit's Massive Staff Reduction

Steemit, a decentralized blogger platform in the STEEM ecosystem, emerged some time ago as a great opportunity to create and share images, text, and more among the members of the crypto community. For a while, everything was going great, and a lot of people were able to profit from it. But, as the crypto winter continued, the platform started seeing difficulties, which resulted in a massive 70% layoff. The token's price went down as well, and it still awaits recovery.

4. ShapeShift Workforce Gets Cut Short

Another example of an exchange that had to go through a massive staff reduction is ShapeShift. This exchange is known for always treating its community well, which is why a 30% staff reduction came as a surprise to many. 37 people lost their jobs as a consequence of the market behavior, which is never an easy thing to deal with, for the staffers or the company.

5. Unocoin Reduces Staff To 14 Workers

Then, we have Unocoin, another exchange that struggled a lot to remain operational and relevant. The exchange already has to deal with Indian regulations that are making it difficult for it to remain open, despite the fact that it is among the better, more established crypto exchanges in the country. With these issues, added to the market behavior, the exchange had to reduce its workforce to only 14 individuals. Comparing this to over 100 people who were employed by the exchange in 2018 shows that Unocoin is not seeing the best of times right now.

6. Sirin Labs Gets Affected as Well

Next, there is Sirin Labs — a company well known for being among the first to come up with a blockchain phone. While its sales did not really impress, proving that it may still be too early for this kind of tech. As a result, the firm had to go through a 25% staff reduction. This does not mean that blockchain phones might not go mainstream in the future, but it certainly doesn't show that making them is a profitable venture at this point in time.

7. Even Circle Goes Through Layoffs

Finally, there is Circle — a well known financial firm, which acquired Poloniex exchange only months ago. Then, only a few days ago, the company announced a massive layoff, including dozens of employees. While it is not precisely known how many people were laid off, it is estimated that the number must be around 10% of the firm's total staff. So far, the Poloniex platform did not feel any consequences of the move, and it seems likely that this will remain true in the future. However, the fact that even Circle had to reduce its workforce proves that this is not the best time for businesses, no matter where in the world they operate.

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Ali Raza
Ali Raza
A freelance journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali's work has been published on a number of cryptocurrency publications.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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