- Ledger, a prominent crypto hardware wallet manufacturer, is cutting 12% of its workforce.
- The decision is attributed to the prolonged crypto market downturn and economic challenges.
- The crypto industry has witnessed significant changes since 2022, impacting market dynamics.
Ledger, a prominent manufacturer of cryptographic hardware wallets, has decided to reduce its workforce by 12%.
As indicated on the company’s LinkedIn page, Ledger currently employs 734 individuals, which means approximately 90 employees will be affected by the workforce reduction.
This decision comes in response to the ongoing challenges in the crypto industry, particularly the extended period of a crypto market downturn commonly referred to as the “crypto winter.”
The years 2020 and 2021 witnessed remarkable growth in the crypto industry, with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) reaching historic highs in the market. Other alternative cryptocurrencies and non-fungible tokens (NFTs) also experienced significant growth during this period.
However, the landscape changed significantly in 2022 when central banks initiated measures to combat economic issues such as inflation and liquidity tightening. This economic shift has persisted into 2023.
The combination of these factors, along with incidents like the Terra ecosystem collapse and the bankruptcy of FTX, has taken the wind out of the sails of the crypto bull market that characterized 2020-2021.
Bitcoin, for instance, is still trading at around 60% below its all-time highs from 2021, while many major altcoins have declined by more than 90%.
Data from DeFi Llama indicates a substantial contraction in the decentralized finance (DeFi) sector, with total value locked (TVL) across all chains plummeting to approximately $78 billion, compared to the well over $300 billion recorded in late 2021.
Moreover, global spot transaction volumes on cryptocurrency exchanges have stagnated, remaining at their lowest levels since late 2020, with September figures hovering just above $300 billion, a sharp contrast to the record high of over $4 trillion in May of the same year.
Given the current state of the crypto market, many companies in the industry have experienced significant declines in their earnings.
Between April 2022 and March 2023, it is estimated that approximately 30,000 individuals employed in the crypto sector lost their jobs. It is highly likely that this number has continued to rise in the months that have followed.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.