A number of major crypto companies in recent months have laid off employees in an effort to keep their businesses afloat. But as big players drop talent back into the pool, startups are getting the opportunity to snatch them up.
Recruiters and talent heads alike shared their thoughts with TechCrunch on what this means and how talent should navigate the current hiring environment.
“Hiring in a bear market is unique in that those who seek to join the space during downturns are more likely to be passionate about, understand and believe in the industry long term,” Zack Skelly, head of talent at crypto-focused investment firm Dragonfly, said to TechCrunch. “They’re in it for the right reasons versus simply needing to find another job or hoping to financially take advantage of a hype cycle.”
On Monday, reports emerged that Gemini, a crypto startup that intermingled with the now-bankrupt Genesis, is laying off 10% of its staff, according to internal messages viewed by The Information. This was not the first time Gemini laid off staff, either. In July, the firm executed a second round of layoffs, just seven weeks after cutting 10% of its workforce due to “turbulent market conditions,” TechCrunch reported.
Gemini is one of many major crypto firms cutting back. Earlier this month, Coinbase and Crypto.com both axed 20% of their jobs as the firms tried to weather the downturn in the crypto market.
Even though layoffs are happening to major crypto firms, that’s just one segment in a broader resizing of tech workforces: Salesforce, Amazon, Meta, Alphabet and Microsoft have all conducted layoffs in recent weeks.
“More broadly, this means access to an even larger pool of proven, capable talent,” Gus Brewer, a recruiter at Alchemy, said to TechCrunch. “Many of the companies facing layoffs are known for their extremely high standards when it comes to recruiting, which should definitely be a consideration when evaluating newly available talent.”
Some crypto projects and startups are revising their hiring plans to capitalize on this influx of talent, Skelly said. “Yet while a larger pool of candidates may make it easier to fill headcount overall, I’ve heard some founders say that it’s been harder to find those who are truly mission-aligned. There are more qualified resumes appearing — yes — but there’s also more to filter through when it comes to the intangibles.”
But it’s important to note that not every crypto sector is hiring aggressively. “There’s very minimal opportunities in trading right now,” Dan Eskow, founder of web3 talent agency Up Top, said to TechCrunch. “There doesn’t seem to be any action whatsoever. Whether it’s developers, traders, researchers, there’s not much to be done.”
Eskow focuses on helping talent find jobs in early-stage projects or companies. “You don’t see a ton of layoffs [for startups] because many wait until they absolutely have to. [ … ] Within the DeFi space, there’s a much higher job stability situation,” he noted.
Now is a slow period, Tyler Feinerman, head of talent and people operations at Wachsman, said to TechCrunch.
“January is typically a slower time of year for hiring, but macroeconomic factors have certainly exacerbated conditions,” Feinerman noted. “February to April is typically the hottest period for the job market, so while things might remain a little slower than usual, I think we can expect to see some green shoots on the horizon.”
How to stand out
Because there are thousands of web3-focused people looking for new roles, recruiters had some thoughts on how people could stand out.
“When I’m recruiting for early-stage startups, I’m seeking people who love building, love what they’re building and are experts at what they build — or have the potential to quickly become experts,” Skelly said. “Hiring outside of those lines can lead to cultural and technical dilution that’s especially difficult for a small company to absorb.”
Startups are looking for candidates who demonstrate high ownership, initiative, autonomy and accountability, Skelly added. “A ‘no task too big or too small’ mentality. People who are not afraid to ask questions, delegate and seek assistance when needed. Learning agility is paramount, as well as strong organization and time management skills.”
Beyond that, hiring varies depending on the role and a company’s value and workflows, Skelly noted. “Consistently, though, web3 teams seem to look for knowledge of the space and alignment with its ethos: a passion for the tech and its transformative potential for the world.”
“My advice would be to really familiarize yourself with every corner of the ecosystem you want to work in,” Brewer said. “Nothing replaces being immersed in the ecosystem.”
Above all else, startups are looking for passionate, dedicated people who can “get scrappy and do what needs to be done to drive momentum,” Feinerman said.
“Publicly demonstrating your knowledge and interest can set you apart and go a long way in building a network that can help open doors,” Skelly said.
“As far as people looking to pivot into crypto, I won’t sugarcoat it: I don’t think it’s an easy time for someone to pivot into the space,” Eskow said. Those who really want to pursue it, though, should build out their personal brands — whether that be through writing blog posts, creating content or joining communities — and “be in the right rooms and connect to the right people,” he added.
Feinerman agreed. “I encourage people who are interested in working in the web3 space to attend local meetups,” she said. “Tons of cities have crypto meetups that anyone can attend and they are great opportunities to network and meet people who are already in the industry. The other thing to do is join the online communities — Discords and Telegrams — of projects you are passionate about.”
By engaging with the community both in person and virtually, candidates can get themselves in the door, so to speak, “especially in a market downturn when companies are still hiring but might not be advertising open positions on job boards or actively recruiting,” Feinerman said.
In general, recruiters are looking for candidates who “think outside the box,” Brewer said. “Malleability is also a major attribute for us. A lot of the traditional methods for doing things are being challenged by web3 — marketing, social media, technologies, for example — and so being able to adapt and find new ways to do things is critical.”
“There’s plenty of qualified people but they’re finding it hard to find jobs because companies are rightfully so nervous about making an investment in a full-time employee in a market where they won’t see a lot of return,” Eskow said. “It’s a good time for people to pitch themselves as a consultant or contractor and give the company some flexible engagement model so they’re not tied to a full-time employee and they can evaluate as they go.”
At the end of the day, sales and business development-focused people “should be paying for themselves based on deals they bring to the table,” Eskow said. “A good strategy right now is to give them the option to not be overcommitted to you, but it opens the door to show what you bring to the table.”
Bringing in the talent
On the other side of the spectrum, early-stage startups are fighting against market conditions to build a brand for themselves, and that brand should indicate some sense of stability, Eskow said. “So it’s important for early-stage companies to brand themselves [in a way that] makes job-seekers see them as a stable opportunity that wouldn’t put them back on the street in three months.”
As for salaries, the general compensation is lower than what candidates received during the previous bull market, which makes sense as companies try to preserve their burn rates. “A lot of people are taking cuts to accept a new job in this market,” Eskow said. “If they want to retain them with the salary they’re paying, they should show companies their value in the upside through equity or tokens.”
People who were hired during the bull market are getting mixed offers now, Eskow noted. For example, a Solana engineer once made a $250,000 base with total compensation of about $800,000, he said. “All that Solana upside is basically gone, so now the engineer might accept a role with a $200,000 base as long as the upside will bring him to a $400,000 to $500,000 total compensation.”
“An influx of talent also means that offer negotiation power has shifted more toward companies,” Skelly said.
While the downturn has hurt all corners of the crypto market, there may be a silver lining for companies and talent.
“A downturn like the one we’re in can be extremely painful, for employers and employees alike, but it presents both groups with a chance to reevaluate their trajectory and course-correct,” Brewer said. “The web3 ecosystem will come back stronger as it has done so many times before and hopefully with most of the available talent in a role befitting their skillsets.”