Even the crypto giants are not immune to market pressures. Recent reports have highlighted significant workforce reductions at two major blockchain companies, Circle and Dapper Labs, despite their substantial fundraising successes.
Circle, a leading stablecoin issuer, has recently reduced its workforce slightly to maintain a “strong balance sheet”. The company has raised a total of $1.1 billion in funding over 11 rounds, with the latest funding raised on April 12, 2022, from a Private Equity round.
Despite this financial backing, the company has found it necessary to reduce or end investments in non-core activities and reduce operational expenses, which includes a marginal reduction in headcount. However, Circle continues to identify new areas for investment and hire in key areas of focus on a global basis.
Similarly, Dapper Labs, known for developing popular NFT collectibles such as CryptoKitties and NBA Top Shot, has announced its third round of staff layoffs in less than a year as a reflection of the broader slump in the crypto and NFT markets.
The company has let go of 51 employees, representing around 12% of the company’s staff. This comes despite Dapper Labs raising a total of $612.5 million in funding over seven rounds, with the latest funding raised on November 21, 2022.
Although Bitcoin price has been above $30,000 for nearly 20 days and some traders have anticipated a bull market, the workforce reductions at both Dapper Labs and Circle remind us of the ongoing challenges in the crypto market overall and the bearish market is not over yet.
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