Crypto job market holds up despite tech layoffs

Crypto professional recruiters say they haven't seen a decline in crypto-related job opportunities despite the mass layoffs in the broader tech industry.

The crypto job market shows little sign of slowing down despite major tech companies laying off workers and halting hiring.

Several large tech companies have announced layoffs in recent weeks, citing a downturn in traditional markets and dwindling demand for products that have thrived during the pandemic. The most recent announcements of layoffs include Twitter, Uber, Amazon and Robinhood.

Movie streaming company Netflix on Tuesday terminated 150 employees, mostly in the United States, as revenue growth slowed. Earlier this month, Facebook parent Meta suspended hiring for most mid- and senior-level roles after missing revenue targets.

LinkedIn post by a Netflix employee

The crypto industry has not been entirely spared either. On Tuesday, Coinbase announced a slowdown in hiring after the company lost $430 million in the first quarter. Emelie Choi, Coinbase's chief operating officer, told employees in an internal memo that the increase in headcount will occur in 2022 as market conditions require the company to "slow down hiring and reassess our headcount needs in light of our highest priority business goals." Plans for a doubling were put on hold.

So, are we at the beginning of a massive slowdown in crypto hiring? The cryptocurrency recruiters interviewed by Cointelegraph don’t think so.

“We haven’t seen a slowdown in crypto hiring,” said Crypto Recruit founder Neil Dundon.

Dundon's company specializes in recruiting in the blockchain and cryptocurrency space.

Our teams are spread across the US, Asia Pacific, and Europe, and demand is equally high across the region.

Proof of Search founder Kevin Gibson told Cointelegraph that layoffs in the tech industry have so far had little impact on his crypto clients.

“I’ve only heard of two companies laying off staff,” Gibson said. “That may change over the next month, but any vacancies will be immediately filled by quality, well-funded projects.” As a job seeker, you won't notice any difference...if you lose your job, you'll also get lots of job offers pretty quickly. "

Gibson said that most crypto projects are still in the startup and early stages of their life cycles, still operating on the venture capital (VC) they received last year.

The vast majority of high-quality projects received funding last year, so (they will) continue to develop and hire. There is such an imbalance between talent and jobs that any pullback from pre-funded projects goes unnoticed.

Blockchain and crypto startups had a record quarter of funding for blockchain and crypto startups, with venture funding reaching an all-time high in the three-month period, with $9.2 billion raised, surpassing 2021, according to CB Insights’ Q1 2022 Blockchain Report $400 million in the fourth quarter. This is the seventh consecutive quarter of record blockchain funding.

Dundon said he has seen more traditional tech companies and employees venture into the crypto space, further enriching the crypto job market.

At the very least, most forward-thinking tech companies are allocating some budget […] researching how to integrate blockchain into existing models […] Not only are more and more companies venturing into this space, but As traditional tech companies downsize, candidates are pouring in.

A study published by Linkedin in January found that from 2020 to 2021, crypto-related jobs in the United States surged by 395%, while the technology industry only increased by 98% during the same period. The most common job requirements include blockchain developer and engineer.

According to Glassdoor, developers earn an average annual salary of $109,766. Engineers earn a slightly lower average annual salary of $105,180.

When asked if the current bear market in the crypto market will lead to more layoffs at crypto companies, Dundon said that he does not expect the same situation as in 2018.

“In the past, when the price of bitcoin fell, crypto hiring tended to slow down. It was almost directly related to the price,” Dundon explained.

But this time is different, as crypto companies are now managing their finances in a more responsible manner... which all means a more stable job market.

Text: PHILIP WU‍