Coinbase Global’s total number of job postings decreased by 73% from 730 jobs in January 2022 to 197 jobs in May 2022, found GlobalData. The leading data and analytics company’s Job Analytics database notes that job closures rose from around 14 days in January 2022 to 75 days in June 2022*.

Sherla Sriprada, Business Fundamentals Analyst at GlobalData, comments: “Crypto markets have recently been on a downtrend amid inflation issues with investors taking a step back from the market. This is likely affecting jobs as well, as companies may be forced to lay off employees and reduce their workforce.”

Dr Lil Read, Senior Thematic Analyst at GlobalData, comments: “We’re plummeting into a cold crypto winter, and we haven’t hit the freezing point yet. Rumours and fears are swirling that bitcoin will drop below $20,000 amid wider volatility in financial markets and sell-offs in other asset classes. This is a generous, rose-tinted outlook on a 6-to-12-month view. Bitcoin, Ethereum and other coins have plunged in value, and the bottom is yet to come.

“Volatility is nigh on synonymous with crypto, and some can weather the storm better than others. Coinbase, Gemini, Crypto.com, and BlockFi have begun laying off staff, whereas Binance will continue to recruit talent – many of whom are now unemployed and looking for their next job.”

GlobalData also notes that cryptocurrencies as a theme in job postings fell by 5% from January 2022 to May 2022. At the same time, closed jobs increased by 169%, with firms being able to find the right talent for the posted roles. However, a dip in new job postings points at a likely slowdown in new hiring, and a high growth rate of closures highlights that companies are focusing on closing already posted jobs.

Sriprada adds: “In June 2022, BlockFi announced a reduction in headcount by roughly 20%. The company’s total number of job postings decreased by 77%, from 95 jobs in January 2021 to 22 jobs in May 2022. Another example is Latin American crypto exchange Bitso SAPI de CV that laid off over 80 employees out of its total workforce. The company’s job postings also decreased by 25% in May 2022 over January 2021.”

*Data is updated to 14 June 2022