Despite a wave of strong crypto layoffs to kick off the new year, employees in engineering and technical roles, as well as senior management, will likely continue to see “strong demand” for their skills, recruiting professionals believe.
It has been a difficult first few weeks of 2023 for cryptocurrency companies and their staff. In just two weeks, the market has already seen over 1,600 cryptocurrency-related job cuts as a result of continued market volatility and uncertainty.
However, not all departments have seen the same level of cuts.
SAFU: high-level technology and engineering
Rob Paone, founder and CEO of crypto recruitment firm Proof of Talent, told Cointelegraph that technical and engineering positions are by a “wide margin” the most in-demand jobs, even during bear markets.
He said his company is still seeing “strong demand” for these roles, adding that these salaries remain “very competitive” even though “bidding war scenarios” are no longer the case for these employees.
Johncy Aggregate, director of cryptocurrency recruiting firm CapMan Consulting, said it’s common for mid-level roles to be cut during a bear market, but said senior roles tend to “double or triple” during a bear market.
Aggregado added that roles like CTO and CIO tend to be safe, because people in those positions have to keep the business flowing and keep “things in order” while the market corrects.
No SAFU: ‘Not Mission Critical’
However, Paone said that the jobs that crypto companies tend to eliminate first are “usually” related to internal recruiting, customer service, compliance, and anything that “doesn’t generate revenue or produce product.”
Investor and broadcaster Anthony Pompliano, who is also the founder of crypto trading firm Inflection Points, said that while every company approaches bear markets differently, it has historically seen “non-mission critical jobs” hit hardest by layoffs.
These roles, according to Pompliano, are any role outside of product, engineering, operations, customer service, and management.
Commenting on the ongoing bear market, Pompliano said he has heard “numerous reports” of pay cuts at smaller companies, while others have frozen raises and annual bonuses.
Paone also added that in some cases, even those in technical roles may not be able to avoid job cuts entirely, explaining that cryptocurrency firms forced to make “deeper cuts” have also had to reduce their IT teams. engineering and products.
Related: Crypto layoffs trigger mixed responses from the community
In recent months, a number of cryptocurrency companies, notably stock exchanges, have cut staff amid the market downturn.
Last week, crypto exchanges Crypto.com and Coinbase announced cuts to their global workforce.
Crypto.com CEO Kris Marszalek tweeted on Jan. 13 that the exchange had made the “difficult decision” to cut its global workforce by “about 20%” due to difficult market conditions and recent security events. the industry.
Meanwhile, Coinbase CEO Brian Armstrong announced on Jan. 10 that the exchange would cut 950 jobs as part of a plan to cut operating costs by around 25% amid the ongoing crypto winter.
Crypto exchange Binance was one of the few to announce otherwise, hinting at plans for a 2023 “hiring spree” during a crypto conference in Switzerland.
However, Paone suggested that while crypto layoffs have been in the spotlight, it has not driven crypto professionals away from the industry.