Discharges in the crypto industry can have unintentional consequences
Discharges in the crypto industry can have unintentional consequences
- Studies have shown that layoffs are likely to increase the likelihood of bankruptcy
- Although there are many companies in a baisse, they are still looking for talents
In the past month, prominent crypto companies released thousands of employees while preparing for a long crypto winter.
Coinbase dismantled 1180 employees (about 18 % of his team) and withdrawn job offers; Blockfi dismissed a fifth of his workforce; Gemini dismissed an estimated 100 employees; and Crypto.com, based in Singapore, reduced the staff by 5 %, about 260 people.
employees who lose their job are most likely "marketing people, young developers and project managers," Sergey Vasylchuk, CEO from Everstake, told Blockworks.
"As far as I can see from other cryptocurrency companies, first relieve those who are overpaid, and then those who are paid little but do less.
Since these large companies actively reduce their workforce,
The Journal of Business Research published which indicates that" Could lead to a variety of problems that ultimately increase the likelihood of a bankruptcy. ” companies lose valuable knowledge when employees go and remaining employees often have difficulty dealing with new workloads. Motivation and commitment are often also affected when trust in management disappears. "It is important to consider that there are not only direct costs such as severance payments and accrued advantages, but also indirect costs such as damage to the call", Dr. Wayne Cascio, professor at the Denver Business School of the University of Colorado and senior editor of the Journal of World Business to Blockworks. Cascio says that voluntary fluctuation in the year after dismissal leads to employers often lose some of their best employees. "The reason why companies are trying to find alternatives to dismiss employees is to avoid this reputation damage, and it makes it easier to attract employees as soon as the demand returns," he said. "If you believe that a downturn will continue a quarter or half a year, then you should probably look for alternative opportunities to reduce costs and at the same time keep the talents you currently have." This opinion is made by Peter Cappelli, a professor of management at the Wharton School, who told the university's business journal, confirms Knowledge at Wharton that "There are no evidence that freestations help to improve profitability beyond the immediate, short-term bookkeeping." Despite the multiple layoffs, many crypto companies still hire. Ryan Selkis, CEO of the crypto research company Messari, announced on Twitter that the company is more than 20 new employees is. The crypto exchange Bitget based in Singapore plans to double its workforce in order to reach 1,000 employees by the end of the year, and the decentralized staking provider Everstake, based in Ukraine, has hired 30 new employees since the start of the war without releasing employees. "Responsible companies that survive the bear market will bring even more worth the industry," said Vasylchuk. "Crypto projects that neither manage risks nor are suitable for the product market will leave the market. This is a good thing because they will release resources." . . The contribution "Discussions in the crypto industry can have unintentional consequences" is not a financial advice.