This week’s Blog is hosted in the company of our very own Fran Thompson, Lead Practice Director at Finitas. Alongside Fran we will be covering last year’s tough bear market as well as the persistent layoffs and bonus cuts seen in 2023’s first quarter, and how you can prepare yourself for a turbulent economic year.
The start of 2023 was no doubt challenging for many in the digital and tech industry. Crypto companies are continuing to axe workers around the world in the wake of last year’s bear market with as many nearly 95,000 workers being laid off across 297 companies. These layoffs come at the hands of multimillion-dollar companies such as CoinBase, Crypto.Com, Genesis, BlockChain, and PayPal. Additionally, banking layoffs look fit to persist further into 2023.
Here are the facts.
CoinBase, the largest U.S. crypto exchange site, said it would eliminate around 20% of its staff, equalling to about 950 people.
Tech titan Crypto.com axed one fifth of its global workforce, as announced ineptly via email - allegedly Crypto workers found out they were laid off when they were abruptly disconnected from online meetings or kicked off company systems.
Genesis laid off 30% of its staff and filed bankruptcy protection, along with two of its subsidiaries.
Blockchain is said to have eliminated 28% of its workforce, equivalent to about 110 employees as well as shutting down their firm in Argentina.
Crypto research firm Messari has reduced its workforce by 15%, according to CoinDesk.
In addition, evidence shows that redundancy contagion will not be the only thing skyrocketing this year. A LinkedIn survey officiated by Fran Thompson observed that 62% of respondents had a lower annual bonus than for their previous year. Fran Thompson comments on this year’s bonus cuts, "We speak to candidates and clients all over the world in the fintech industry and bonuses are definitely down significantly across the majority of our contacts compared to last year. This could be part of a lay-off/push out strategy by employers post covid or just a reaction to the turbulent economy."
Fran emphasises that its essential during this time to step up your attention to work. Become indispensable to your company, push yourself to achieve more and identify then improve on your weaknesses; see this as an opportunity for self-improvement! Spread positivity to your colleagues and make yourself visible! Even if you have the option to work from home, consider joining your colleagues in the office whenever possible to create adaptability and connection.
In parallel, it’s worthwhile keeping your CV up to date, as you never know when you might need it again, this will also help you be more critical of any weaknesses or gaps in your experience and qualifications which you may choose to improve upon. Adapting a survival mentality will ensure you’re ready to buckle down and work hard should redundancy knock on your door.
Even if you aren’t actively looking for a new role, its worthwhile entertaining new opportunities and applying for positions both internally and externally. Knowing your market value vs how your current employer values you is always useful.
Times like these provide you with the urgency to consider what you truly want to do. Seek out opportunities that provide you with fulfilment and the ability to unlock new, fresh skills. “If you do lose your job, after the initial shock, you may well realise it was no bad thing.” Comments Fran Thompson “Maybe it’s time to reassess, especially if you’re getting a severance package. The redundancy pay-out will give you a buffer to brush up on your transferable skills and approach the industry from a new perspective."
To find out more about Finitas and what we do, contact us here!