It is raining layoffs in the technology industry. That also affects various companies active in cryptocurrency, finance, and fintech. Recent layoff rounds confirm things look very bleak right now, and more trouble may be on the horizon.
November Is A Busy Month For Layoffs
Global economic uncertainty creates a volatile cocktail for any company in any industry. The technology industry is often hit hardest as it employs a wider variety of people. In addition, millions of companies are in this space, and not everyone will survive the current onslaught. Unfortunately, that also means layoffs are the norm rather than an exception.
November 2022 has been rather bloody for layoffs across finance and crypto. Not entirely surprising, as the crypto markets have been bearish throughout 2022. In finance, there was much excitement regarding BNPL earlier in the year, but that industry segment continues to lose momentum. In addition, money is on everyone’s mind, but fewer people are willing to lend, borrow, or splurge.
Per data by Layoffs.fyi, there have been severe layoffs in the first half of November 2022. A total of 16 companies have confirmed to lay off people in some capacity. It confirms the trend established earlier in the year continues. Particularly companies in the SF Bay Area are struggling. Then again, that is a hotbed of finance and crypto activity, so the result isn’t too surprising.
The biggest shake-up affected Nirvana Money, a finance startup operating out of Miami. As of this week, everyone has been laid off, even though Bill Harris founded the company in October 2022. Even so, the team will discontinue the service after a seemingly unsuccessful “beta test”. In addition, all accounts will close on December 1, giving users some time to get their money off the platform.
Crypto Companies Struggle But Survive
Other notable layoffs in finance affect firms like Root Insurance, Dock, Stripe, Pleo, Affirm, Chima, Chargebee, Smava, and Upstart. For these companies, that results in cutting the workforce by 1% or more. However, in the case of Root Insurance, there is a 20% reduction in employees. It may prove necessary, as the company plans to IPO eventually.
Similar trends are visible in the crypto space:
- Coinbase laid off 60 employees
- Ocavu reduced its workforce by 48% or 20 employees
- Mythical Games let 10% of its staff seek out other pastures.
- Dapper Labs had to let go 22% of its workforce
- Digital Currency Group now has 13% fewer employees
- BitMEX cut its staff headcount by 30%.
The entire finance industry is struggling throughout 2022. With Christmas around the corner, more layoffs may loom ahead for startups and established companies. There is still tremendous financial uncertainty worldwide, and it doesn’t appear anything will change.
While not all companies will face the fate of Nirvana Money, it wouldn’t be unthinkable to see more projects go out of business.
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