The cryptocurrency industry has seen a significant number of layoffs in the first 2 weeks of January, with over 1,600 job cuts reported.
The initial 2 weeks of 2023 have been quite rough for crypto firms and their employees. The crypto market has seen over 1600 job cuts due to uncertainty in the market.
Despite this, experts believe that employees in technical and engineering roles, as well as senior management, will still experience strong demand for their skills.
The market uncertainty and volatility have led to these job cuts across various departments, but not all have been affected equally.
SAFU: Senior-level tech and engineering
According to Rob Paone, the founder and CEO of crypto recruitment firm Proof of Talent, technical and engineering roles are in high demand, even during bear markets.
He stated that his company is still experiencing strong demand for these positions and that salaries for these roles remain competitive.
Johncy Agregado, the director of crypto recruitment firm CapMan Consulting, also reported that it is typical for mid-level roles to be cut during bear markets, but senior positions tend to see an increase in demand.
Agregado further added that positions like chief information security officer and chief technology officer are usually secure as they are responsible for maintaining the smooth operations of the business during market corrections.
Not SAFU: ‘Non-mission critical.’
Rob Paone, the CEO of crypto recruitment firm Proof of Talent, stated that when companies are cutting jobs during a bear market, the positions that are usually affected first are in-house recruiting, customer service, compliance, and any roles that do not generate revenue or contribute to product development.
Anthony Pompliano, the founder of crypto recruitment firm Inflection Points, also said that during bear markets, non-critical roles are typically the most affected by layoffs. These roles include positions outside of the product, engineering, operations, customer service and management.
Pompliano also reported that he has heard of salary reductions and freezes on raises and bonuses at smaller companies during the ongoing bear market.
Paone added that even those in technical roles might not be immune to job cuts, as some firms have had to make deeper cuts and reduce their engineering and product teams.