The developer of the Filecoin blockchain network, Filecoin Protocol Labs, has revealed its decision to lay off 21% of its workforce, according to today’s cryptocurrency news.
In the blog post, Benet said that the global economic crisis has been particularly difficult for the Bitcoin business in particular.
What are the reasons for Filecoin’s layoffs?
As expected, CEO Juan Benet explained the layoffs in a blog post titled “Focusing Our Strategy to Weather Crypto Winter.”
“The cryptocurrency winter has been made worse by the macro winter, making it more severe and maybe lasting longer than our industry had anticipated. Despite our best efforts to prevent it, we were forced to make the terrible choice to eliminate 89 jobs from our team, or nearly 21% of it. This affects the members of PLGO teams (PL Corp, PL Member Services, Network Goods, PL Outercore, and PL Starfleet).
During the cryptocurrency winter, Protocol Labs joined the list of businesses in the sector that made layoffs. Other blockchain- and cryptocurrency-focused businesses, like Candy Digital, Blockchain.com, Opensea, Huobi, and Gemini, have all made personnel reductions.
Benet said in a blog post on Friday that the adjustments would be difficult for all Labbers and that the business will have a “PLGO All Hands” meeting on Monday to address any unanswered issues.
As a result, Protocol Labs will eliminate 89 positions across a number of areas, including enterprise, member services, and network assets. Overall, the bitcoin sector has been severely impacted by employment losses, with about 29,000 positions lost since April.
Details about the crypto Filecoin’s (FIL) price trend
According to market capitalization, Filecoin’s native cryptocurrency, FIL, is presently ranked 35th in the crypto-economy. Filecoin (FIL) has a market value of over $2.11 billion as of Saturday, February 4, 2023, with a 24-hour trading volume of roughly $136 million.
Over the past 30 days, FIL has increased 65.7% in value relative to the US dollar, outperforming popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
FIL is still down more than 97% from its all-time high of $236 per coin, which was hit on 1 April 2021, despite the 65.7% rise. Moreover, FIL was selling at $5.59 per unit as of 3:30 PM (CET) on February 4, 2023.
As a result, the price rose by 4.04% during the previous 24 hours. FIL’s price has climbed by more than 5.0% during the past week, from $5.34 to the present level. The entire circulating supply of Filecoin has climbed by 1.91% over the previous week, which coincides with a 53.0% increase in trading volume.
As a result, the amount that is now in circulation has increased to 381.39 million, or around 19.4% of its maximum supply of 1.97 billion.
bitcoin jobs lost during market decline and winter of crypto
A list of industry heavyweights who have reduced employees has been compiled as these bitcoin firms struggle to stay afloat. According to press releases and media sources, as of February 3rd, the bitcoin business had lost an estimated 29,602 jobs.
In particular, Bittrex, a cryptocurrency exchange, is laying off more than 80 employees in addition to Filecoin. Chainalysis, a blockchain analytics business, is laying off 40 to 50 employees, or 5% of its staff.
According to some accounts, Prime Trust, a Las Vegas, Nevada-based provider of bitcoin services, is likewise reducing its employees by one-third. The anticipated 290-person roster of Singapore-based Matrixport, a supplier of cryptography services, is being reduced by 10%.
The cryptocurrency exchange Gemini is also reducing its personnel by another 10%, or roughly 100 people, so the situation is far from over. According to PitchBook statistics, it has around 1,000 workers as of November 2022.
The OSL exchange, which is supported by Fidelity, is reducing its workforce by a third but has not specified by how much.