Main navigation

Major Cryptocurrency Companies Have to Fire Most of Their Staff, What's Happening?

Wed, 11/02/2022 - 10:15
article image
Arman Shirinyan
Biggest companies on market have no other choice but to cut their expenses
Major Cryptocurrency Companies Have to Fire Most of Their Staff, What's Happening?
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

The digital assets industry got hit with a series of huge layoffs at major crypto-related companies like BitMex, Galaxy Digital and DCG. Each company plans on decreasing its current number of workers by 20-30% on average. The main reason is the problematic conditions on the market

Despite the most recent but yet mild recovery of the cryptocurrency market, most blockchain-related companies are trying to cut existing costs since almost every entity that somehow worked or held cryptocurrencies could not meet the expectations of investors and experts.

For example, Michael Saylor's MicroStrategy reported a 2.1% revenue decrease since 2021, with $125.4 million. Analysts' expectations were at $127.25 million. The drop in revenue also includes losses from the company's cryptocurrency holdings that did not show any positivity in 2022.

Billionaire Novogratz's Firm Exploring Mass Layoffs

While most companies are trying to hide the fact that they have to cut their expenses by firing most of their staff, the trading volume and market netflows show that the industry is going through a severe crisis and the recovery will not be possible without the prolonged uptrend fueled by fresh institutional inflows that would cause a revenue increase.

Are layoffs a market signal?

Companies cutting their current staff is not something unusual for a bear market. We saw the same tendency back in 2018 and 2019, which is why investors should not consider it a signal about the future of the crypto market, as it is more of a consequence than a cause.

Neither of the aforementioned companies commented on this matter, as they will most likely continue their operations by keeping the essential staff.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.