Trend of Tech, Web3 Industry Lay-offs Starts Early This Month

• Stripe, Dapper Labs, Digital Currency Group, & Galaxy Digital cumulatively sacked over 1,200 employees.
• Coinbase’s chief product officer posted a resignation note on social media.
• However, Chinese exchange Okex opened 100 job offers to locals of the Bahamas.

Web3 firms, including crypto exchanges, venture capital firms, and blockchain protocols, are reducing employee headcount to stay afloat amid the bear market. Some companies, however, are opening offices in new locations regardless of the global market condition.

On November 2, Roham Gharegozlou, the CEO of the NFT firm, Dapper Labs, wrote to employees that about 130 persons of its 600 employees would receive a termination letter. Gharegozlou claimed that the macroeconomic environment and the company’s rapid growth in less than two years prevented it from being “as aligned, nimble, and community-driven” as supposed.

The next day, November 3, Patrick Collison, the CEO of the payment processing giant, Stripe, notified employees that 14% of them, about 1,000 persons, would have to leave the company and seek employment elsewhere. Collison cited inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding as the cause of the business decision.

Interestingly, the Stripe CEO noted that the company overhired people during the global pandemic of 2020-2021, when it experienced a significantly higher growth rate, processing 300% more volume than in previous years.

Furthermore, according to a Bloomberg report this month, companies with pretty low workforce strength, including Digital Currency Group (DCG) and Galaxy Digital, also laid off at least 10% of workers.

Two days back, the chief product officer for crypto exchange Coinbase, Surojit Chatterjee, posted a resignation note on social media.

On the other hand, the Chinese crypto exchange Okex secured a regulatory license this month to operate as a Digital Asset Business in the crypto-friendly community of Bahamas. The firm consequently opened 100 job offers to locals of the Bahamas.

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