• Crypto exchanges are announcing mass layoffs as a "crypto winter" looms.
  • More than 1,700 crypto job cuts have been announced so far in June, per Insider's calculations.
  • Some exchanges expanded hiring when the crypto market boomed last year.

Crypto winter is coming — and so are crypto layoffs.

Multiple crypto exchanges have announced layoffs that will, by Insider's calculations, add up to roughly 1,700 job cuts in total. Here's a rundown of which major crypto companies have announced layoffs so far in June:

  • Gemini said on June 2 that it would be cutting about 10% of its workforce. The company has an estimated 1,000 employees, which means 100 stand to be laid off.
  • Crypto.com announced on June 11 it was terminating 5% of its workforce, or 260 employees.
  • On June 14, BlockFi said it was reducing 20% of its 850-strong workforce, or 170 employees.
  • Coinbase said on the same day it was laying off 18% of its workforce, or 1,100 employees.

Smaller exchanges were not spared, either:

  • Argentina's Buenbit said on May 23 it had cut about 45% of its workforce, which is an estimated 80 employees, per CoinDesk's calculations. 
  • Mexico-based Bitso said on May 26 it had laid off 80 employees.

The layoffs have already begun at Crypto.com, BlockFi, and Coinbase, according to multiple media reports and LinkedIn posts. Gemini's cofounders said in a blog post that affected employees were notified on June 2. Both Buenbit and Bitso said layoffs have begun.

Company leaders have blamed the downsizing wave on market conditions.

"We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period," Coinbase's CEO and cofounder Brian Armstrong said in a June 14 blog post, in which he announced the layoffs.

In a June 14 blog post in which they announced they'd be slowing headcount growth, BlockFi cofounders Zac Prince and Flori Marquez wrote that "our number one goal has been to achieve profitability so that we can own our destiny as we navigate what many expect to be an extended global recession."

Crypto winter, or the multitrillion-dollar slump in cryptocurrency prices, comes after the industry hit record highs in late 2021. The global cryptocurrency market peaked at $3 trillion in November, making it more valuable than either Microsoft or Apple at the time.

But now, fears of an impending recession and soaring inflation are prompting investors to flee cryptocurrencies. As of Wednesday, the crypto market is worth about $903.2 billion, per CoinMarketCap.

One major crypto exchange stands apart from its competitors. Leaders at Binance said earlier this month that the company could still afford to hire more than 2,000 roles this year.

Read the original article on Business Insider