Protocol Labs, Chainalysis and Bittrex add to crypto layoff season

Published at: Feb. 4, 2023

Several crypto firms have made job cuts this week amid the ongoing crypto winter, retaining “impactful” employees as they prepare for a “longer downtown.”

At least 216 jobs were slashed between three crypto firms – open-source software laboratory Protocol Labs, blockchain data firm Chainalysis and U.S. cryptocurrency exchange Bittrex, with reductions of 89, 83 and 44 employees respectively.

Juan Benet, CEO of Protocol Labs, the parent company of Filecoin, announced the job cuts in a blog post on Feb. 3 stating that the company has had to focus its headcount “against the most impactful and business critical efforts.”

He stated that the company's decision to cut “89 roles,” approximately 21% of its workforce, was to ensure it is well positioned to “weather this extended winter.”

Benet suggested that the company must “prepare for a longer downturn,” given it has been an “extremely challenging” time for the crypto industry.

Meanwhile Bittrex employees were informed by CEO Richie Lai over email on Feb. 1 that the company has made a reduction to its workforce to “ensure the “long-term viability of the company.”

The email was leaked via Twitter on Feb. 2, in which Lai stated that despite the leadership team “working aggressively” to reduce expenses and increase efficiencies over the last several months, the efforts have not produced the "results necessary."

Lai added that the market conditions have forced the company to reset their strategy and balance its “investments with the new economic environment.”

According to Washington State employment data on Feb. 2 it was revealed that Bittrex cut 83 jo.

Maddie Kennedy, director of communications at Chainalysis, told Forbes on Feb. 1 that those “primarily in sales” at the company were let go, as 44 of its 900 employees, approximately 4.8% of the workforce, were slashed.

These layoffs come after it was reported that at least 2,900 staff were cut across 14 crypto firms in January.

Coinbase had the largest layoffs amongst those firms, cutting 950 of its staff on Jan. 10.

Meanwhile competitor exchanges Crypto.com, Luno and Huobi had reductions of approximately 500, 330 and 320 staff respectively.

Cointelegraph reached out for comment from Protocol Labs, Chainalysis and Bittrex but did not receive a response by the time of publication.