Crypto Market Struggles Amid Tech Sector Layoffs In 2023

The tech industry faced a reckoning in 2023, with tens of thousands of employees having lost their jobs. The news of mass layoffs not only came from new-age tech startups and apps, but also from some of the big tech companies like Google, Amazon, Meta, and Microsoft.

According to Layoffs.fyi, a platform that tracks job cuts across the tech sector, 1,179 companies laid off more than 2,60,000 employees in 2023. By comparison, 1,064 tech companies had eliminated 1.64 lakh jobs in 2022, according to the data in the tracker.

Crypto Employees Hit Hard By Tech Layoffs in 2023

The mass tech layoffs in 2023 dealt a major blow to crypto employees, a report by CoinWire shows. In a recent survey conducted by CoinWire, 500 employees working in the crypto industry across platforms —including Twitter, Facebook, and Galaxie — shared their plight.

After Job Cuts, Workers Face Pay Reductions, Job Hunting Gets Worse

The survey highlighted that 3 out of 4 crypto employees faced pay cuts in 2023. While 60.09% of crypto employees saw a 10% wage reduction, 8.86% got their pay reduced by more than 30%. Data revealed that Gen Z employees, in particular, were hit hard, with 85.1% experiencing salary deductions, compared to 62.4% of Gen X employees.

Furthermore, securing a new job in the crypto industry became an uphill battle for many workers. While nearly 21% of crypto employees landed a new job in less than a month, more than 50% spent up to three months in job hunting. For others, it took six months or more to find new employment opportunities.

Layoff Survivors Experience Increasing Workload

As companies reduced their headcount in 2023, the workers that stayed came under increasing pressure, with nearly 52% of crypto employees experiencing a sharp uptick in their workloads. Layoff survivors also struggled with the psychological impacts of the downsizing, as fears of another round of job cuts caused increased levels of anxiety among 50.7% of crypto employees.

77% of Crypto Employees May Switch Jobs Within the Next Year

Amid increasing work pressure and reduced pay scale, around 77% of crypto employees are considering switching to a new company in 2024, as per the survey by CoinWire. This trend is more visible among Gen Z employees, with 85.5% saying they’re willing to jump ship.