January 29, 2023

Another cryptocurrency company is laying off 40% of its employees to survive in a bear market

Octopus Network - a multi-chain crypto network that supports Web3 applications - will lay off 40% of its employees. Adverse macroeconomic factorsinfluenced many other industry leaders who have taken similar measures over the past few months. Examples include Coinbase, CryptoCom, Huobi, Bybit, BitMEX, and others. This winter is different.

He also argued that the current bear marketsomewhat different from the previous ones: “This winter is the third winter that I have experienced, the first two are 2014-2015 and 2018-2019 – and I see that this winter is very different from the others.”

Liu believes that cryptocurrencies will be among thethe most affected industries, where high risks and high volatility will continue to prevail. He also believes that most Web3 startups won't make it through hard times, predicting that the negative trend will continue for at least another year.

As a result, Octopus Network (whichsupports the development of Web3 blockchain applications) has launched its “Voluntary Termination Program” and will lay off 40% of the total number of employees. “So we're moving forward with the voluntary redundancy program. 12 out of 30 will leave the main team under the program. The remaining team members will agree to a 20% pay cut and the team token will be suspended.”

Fund Near is an “exclusive strategic investor”and "parent network" Octopus Network. Liu said the partnership between the two organizations remains strong, adding that NEAR and IBC will be "the two cornerstones" of Octopus' new strategy.

Many cryptocurrency companies have reduced the number of their divisions. Leading US stock exchange Coinbase fired 18% of its employees in June, BlockchainCom – 25%, and NFT-the OpenSea platform parted ways with 20% of employees.

Companies including the Argentinean cryptocurrency platform Lemon Cash and Australian marketplace swyftxwent even further, laying off 38% and 40% of their employees, respectively.

Over the past few months, many companieswere also unable to cope with the turbulence and eventually went out of business or filed for bankruptcy protection. Such examples are the former giants Celsius Network, Three Arrows Capital (3AC), Vauld, Core Scientific and others.