Cryptocurrency Layoffs Loom As Protocol Labs, Chainalysis, and Bittrex Let Employees Go

Protocol Labs
Protocol Labs

Massive layoffs are occurring across the cryptocurrency sector, with Protocol Labs, Bittrex, Chainalysis the most recent employers to do so.

At least 216 roles were removed amongst three cryptocurrency businesses, including the open-source software developer Protocol Labs, the blockchain data provider Chainalysis, and the US bitcoin exchange Bittrex.

Many people in the cryptocurrency industry are baffled by the news and wonder why the corporations are taking such dramatic action.

Protocol Labs Layoff Workforce

The first business to declare layoffs was a blockchain infrastructure startup called Protocol Labs. Thirty percent of the company’s employees, or more than 50 people, were let go. The choice was taken “in order to secure the future development of the firm,” according to a statement from the corporation.

Soon later, Chainalysis, a well-known bitcoin compliance firm, did the same. The business announced a restructure of its product & engineering departments and let go of more than 30 people.

A well-known bitcoin exchange called Bittrex was the third business to make layoffs. More than 50 people, especially in customer service, product, and engineering, are alleged to have been let go as a result of the transaction.

The announcement of bitcoin layoffs has caused alarm in the sector as businesses are fighting to survive in a challenging economic climate. Several analysts believe that there may be further layoffs in the upcoming months.

The layoffs occur while the bitcoin sector is under intense regulatory pressure. Several governments are approaching the sector more strictly, which might significantly affect its potential for growth.

Even though the news of layoffs is never pleasant, it serves as a reminder that the market is still developing and that businesses must change to stay competitive. As the sector tries to establish itself in a more difficult regulatory environment, the upcoming months will represent a make-or-break time.