Crypto Firms: Nearing the End of the Layoff?

Since the beginning of the crypto winter, the topic of recruitment has been on everyone’s lips. The recession is upon us, while inflation is in full swing. However, a new survey reveals that suddenly the majority of people working in crypto companies are not looking to quit their jobs.

Despite rising fuel prices, the looming recession and inflation, executive search firm JMJ Phillip notes that candidate sentiment seems more positive. The number of employees who want to leave their position has decreased compared to the previous 12 months. 77% of respondents do not plan to change jobs in the next 6 to 12 months.

“Inflation has reached historic highs. Public markets are collapsing. The crypto market is in decline. The Federal Reserve raised interest rates. And there is a lot of uncertainty in the business environment, with the relatively fragile outlook for the next 6 to 12 months. Despite all these signs, employee confidence remains high,” notes Dennis Theodorou, CEO of JMJ Phillip.

JMJ Phillip believes that technology is the first to suffer in the job market as difficult times approach.

“Tech companies often need access to relatively cheap money to finance their ambitious growth plans and pay for a large workforce. In response to recent rate hikes, companies like Tesla, Coinbase, Redfin, Compass, BlockFi, Cazoo and Notarize have announced layoffs.

Recruitment and web3

However, there are areas where recruitment is actively continuing. “Everyone knows that some crypto projects including Celsius and others have gone bankrupt. But as a recruitment agency, we are busier than ever. We have many high-quality crypto companies contacting us and using this time to build projects. Layoffs bring new talent onto the market. So we use that as a positive,” said Neil Dundon, founder of CryptoRecruit, a recruitment agency specializing in crypto, blockchain and Web3.

Dundon says that while the market isn’t as strong as it was in 2021, we all need to remember that we’ve been through these kinds of cycles before.

“This delay doesn’t seem that bad. It seems that many companies have handled it better this time around. They made better financial decisions to protect themselves.”

Indeed, crypto firms are not suffering as intensely from the wave of layoffs as other sectors.

“Of course people enter the crypto market to get paid. But also because they are passionate about the sector. They are increasingly interested in Web3. They love it and want to work in it, unlike people who work in other companies, who only do the bare minimum, just to get their pay.”

Fields that recruit

Dundon says his company does a lot of work with gaming and metaverse projects.

“With everything going on in the market, the decentralized financial sector has slowed down a bit. I think everyone wants to protect themselves now. Decentralized Autonomous Organizations (DAOs) are a new growth area that is starting to recruit. We are working with several projects that want to create a DAO, because they run themselves. However, these organizations are quite complicated to implement. We hire developers who have entrepreneurial skills, people who really understand blockchain technology and also have business skills. It’s a very unique set of skills.”

According to Dundon, developers of smart contracts are still highly sought after by crypto companies. “What companies want is people who can create controlled smart contracts that don’t get hacked for $50 million. And here, experience trumps training. The best candidates are people who have taught themselves Solidity, an advanced language for creating smart contracts. Like any self-respecting developer, they are always learning new things in their spare time, including the language of Web3”.

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