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One of the Middle East’s largest crypto exchanges Rain Financial Inc has reduced staff amid a recent downturn in digital assets, reported Bloomberg on 1 September.
The firm said that the job cuts were made to reflect the “operational needs and market conditions," though the firm didn’t provide the number of people made redundant.
“As a business we have had to adapt our future plans given these difficult market conditions to ensure we can navigate through this downturn," Rain Financial said.
Rain Financial is not the only firm to have reduced its staff. Several crypto firm have laid off their staff citing a downturn in crypto market.
According to Moneyweb, about 5,000 crypto employees have lost their jobs since April. San Francisco-based Coinbase made the biggest job cuts in the crypto market in 2022, shows data from Layoffs.fyi. In June, the firm announced it was laying off 1,100 people.
Following the footprints, the Singapore-based crypto exchange Bybit cut its staff and laid off a whopping 30% of its 2 000 people workforce, reported Crypto Presales.
Even before the crypto market crash, the crypto exchange Huobi Global laid off around 300 people or 30% of its workforce.
Also, cryptocurrency exchange Crypto.com cut 260 staff in June only, citing downturn in the crypto market.
As per the data, collected by CoinDesk – which monitors crypto layoffs – Genesis, broker Robinhood, Blockchain.com reduced 25% of their staff, NFC marketplace OpenSea made 20% job cut, Ignite made more than 50% job cut and crypto exchange CoinFLEX did a 50% job cut.
Expressing his opinion on the recent job cuts, Coinchange CEO Maxim Galash said that crypto companies like his over-hired during the bull market and are now having to scale back fast.
"Now that the air is coming out of the market, they need to cut staffing costs urgently to stay afloat and weather a downturn that could be intensified by the worsening economic outlook. In other words, hire slow, fire fast. Layoffs are painful, but we do what must be done to sustain and grow the business: prioritize long-term shareholder value over short-term pain," Fortune magazine reported Galash as saying.
This year, the crypto prices declined from the highs reached in early November.
With inputs from Bloomberg.