Tag: workforce

Blockchain.com Slashes 25% Workforce amid Crypto Meltdown

Massive layoffs continue engulfing the crypto market. Blockchain.com took the latest actions by reducing its workforce by 25%.

Citing harsh bearish conditions, the crypto exchange laid off approximately 150 people and shut down its offices based in Argentina. 

Blockchain.com has been on a rapid expansion drive in the last 16 months as a pioneer firm in the cryptocurrency industry, with its staff jumping from 150 to 600. Per the announcement:

“Some 44% of the impacted employees are in Argentina, 26% in the U.S., 16% in the U.K., and the remaining from the rest of the world.”

The recent collapse of crypto hedge fund Three Arrows Capital (3AC) dented the exchange’s financial position after losing $270 million. 

Blockchain.com CEO Peter Smith mentioned in a letter to shareholders, “Three Arrows is rapidly becoming insolvent, and the default impact is approximately $270 million worth of cryptocurrency and U.S. dollar loans from Blockchain.com.”

The exchange has also stopped all mergers and acquisitions (M&A), reduced institutional lending, and slowed its establishment in the non-fungible token (NFT) marketplace. 

The crypto meltdown being experienced has seen Bitcoin (BTC) shed more than 65% of its value from the all-time high (ATH) price of $69,000 recorded in November last year.

As a result, the market downturn has triggered significant layoffs in the crypto space. For instance, crypto exchange Crypto.com and lending platform BlockFi recently announced plans to cut over 400 jobs globally.

Furthermore, crypto exchange Gemini made the second round of layoffs, citing “turbulent market conditions.” Therefore, it seems the layoffs have mostly affected cryptocurrency exchanges. 

AI's Mainstream Impact and Workforce Dynamics in 2023

The landscape of work underwent significant transformations in 2023, primarily driven by the mainstream adoption of Artificial Intelligence (AI), evolving job market trends, and shifts in workplace practices.

AI Goes Mainstream

2023 marked a pivotal year for AI in the workforce. AI technology’s transition to mainstream status reshaped numerous aspects of work life, from job seeking to skill development. GenAI, a term coined to describe AI used in generative tasks, became a top trend, with approximately 70% of workers actively utilizing it. However, this shift also brought about challenges, including concerns over unequal access to AI technologies​​​​.

AI’s influence extended to job roles and required skill sets. The demand for AI and machine learning specialists, data analysts, and digital transformation professionals surged. These roles, intersecting business, management, science, engineering, and social domains, highlighted the multifaceted impact of AI on the job market​​.

Transforming Job Search and Employment

AI’s integration into job-seeking processes represented a significant shift. The job market saw AI applications in resume scanning, interview screenings, and recruitment, altering the traditional hiring landscape. This evolution required job seekers to adapt and navigate an AI-driven market, while employers faced the challenges of ensuring unbiased AI algorithms and transparency​​​​.

Concurrently, AI’s impact on tech workers was evident, with its influence extending to hiring practices and layoffs. The tech sector experienced substantial layoffs, with over 240,000 layoffs in 2023, a more than 50% increase from 2022​​.

Hybrid Work and Its Appeal

The post-pandemic era saw the return of hybrid work models, combining the flexibility of remote work with the benefits of in-person collaboration. This model particularly favored younger workers, fostering improved bonding and communication within teams. Surveys showed that nearly 60% of workers preferred hybrid arrangements, highlighting its popularity and perceived benefits​​​​​​.

Decline in Corporate Jargon

2023 also witnessed a decline in corporate jargon, influenced by younger generations advocating for clearer and more straightforward communication. This shift reflected a broader change in workplace culture, moving away from convoluted language towards more effective communication strategies​​​​.

Increase in Job Interview Compensation

Reflecting the changing dynamics of the job market, 2023 saw significant increases in job interview compensation. Data from WorldatWork revealed that U.S. employers, on average, raised salary budgets by 4.4% in 2023, exceeding previous projections. This increase represented the highest since 2008, indicating a strategic response to the evolving economic and employment landscape​​.

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