Throughout this market downturn, there has been a lot of news concerning job losses in the crypto industry. Despite the continuous media attention, research suggests that crypto losses in the crypto sector make up a very minor portion of all job losses in the broader tech industry. According to the research, the crypto industry is responsible for only 4% of the total job losses in the tech industry.
As of November 13, the report stated that only 4,695 workers in the cryptocurrency sector had been let off. This put the crypto industry in the top 10 for layoffs in the technology sector in 2022. In contrast, the tech industry had a job loss of nearly 100,000 individuals in 2022. The situation with cryptocurrency appears far worse than it actually is due to sensational mainstream media headlines.
This number takes into account the well-publicized layoffs at Meta and Twitter. A staggering 11,000 people were let go by Mark Zuckerberg’s social media company earlier this month. This accounted for almost 13% of its whole workforce and approximately 60% of all layoffs in the consumer IT sector this year.
When Elon Musk gained control of Twitter, one of his first actions was to lay off employees. Approximately 3,700 individuals were laid off, which is 20% of the whole consumer tech workforce.
The report highlighted that a tech company laid off more employees than the entire cryptocurrency industry. Apple, Amazon, Alphabet (Google), Microsoft, and Stripe are other tech behemoths that have reduced employees and halted employment.
With 18,486 individuals cut from their jobs so far this year, the consumer technology industry led the way in workforce reductions. As a result, the industry accounts for 15.6% of all technological job losses.
In contrast, despite the poor market, Ripple was actively employing. Employees getting laid off at FTX due to its liquidity issues were told by company CTO David Schwartz that “Ripple is constantly hiring.”
“Technical services” are among the industries with the highest growth rates, according to the U.S. Bureau of Labor Statistics. However, the tech industry is not likely to fully recover until the macroeconomic situation improves following covid shocks.