The cuts hit crypto real estate technology especially hard this week: TechCrunch

Hey Siri, when does a “macroeconomic downturn” become a “downturn”?

This is a bleak week for start-ups facing sad technology stocks and even worse cryptocurrency prices. But let’s start with some good news children can be vaccinated against COVID-19!

Back to bad news ․ we write other: weekly reductions column:because once this week there was so much bad news that it needs to be rounded up.

Crypto-real estate startups were particularly bad this week, of course Mortgage rates are rising, fewer people want to buy a house. Bitcoin, meanwhile, is dangerously approaching the $ 20,000 mark, which is a significant drop from the $ 60,000 + price we saw just seven months ago (I was told on Twitter that #ItsNotAllAboutPrices).

Unfortunately, this week’s cuts covered only those two areas that were also affected by consumer technology, fintech and food delivery.

Let’s start with real estate

Our own Mary Ann Azjedo followed up on real estate technology, announcing on Tuesday that publicly traded real estate brokerage platforms. Redfin: և: Compass is fired united 900 employees.

“I said we would not fire people until we had to,” said Glenn Kelman, chief executive of Redfin. “We have to.”

Redfin offered the fired employees a 10-week base salary plus an additional one week for each year of service of 15 weeks. They will also be paid three months’ worth of company health care so they can temporarily renew their insurance.

In addition to reducing 450 jobs or 10% of employees, Compass will cut employment և M & A for the rest of the year.

Rental platform in San Francisco Jumps: also cut about: 15% of its 300 employees, which has had the greatest impact on his art, sales and customer service departments, according to The Real Deal. Another Bay Area broker earlier this month, Next to to cut 10% of its staff also.

Despite this industry change, some companies are still going strong. Proptech Company: HomeLight: raised: $ 60 million ձեռք Accepted the credit startup this week.

Pain on the blockchain

Coinbase: suffers from a slow, moral and psychological decline. After the freezing of the employment, then the contradictory cancellation of the accepted offers, the crypto exchange announced this week that will reduce the labor force by 18%.

Remember when we said cuts are a little more tolerable when you’re not crazy to your employees? I’m sorry to tell you that the top Coinbase people probably do not read my work.

In a letter to employees, CEO Brian Armstrong said that laid-off employees would be notified of their status via their personal email. they will be immediately disconnected from their corporate accounts to protect sensitive data.

It is true that angry former employees can take revenge by leaking such information. But do you know how to hurt them more? Cut them off from their job accounts without warning; tell them they have no other jobs.

Coinbase had 1,250 employees in early 2021, when the NFT craze sparked a new wave of cryptocurrencies. The team has more than quadrupled since then.

“There were new use cases that enabled crypto gravitation virtually every week,” Armstrong said. explained. “Although we did our best to make it right, in this case it is clear to me now that we have overpaid.”

Armstrong added that the recruitment of new staff has made the team less productive in recent months.

Coinbase provides a 14-week severance pay for injured employees plus two weeks for each year of work for more than one year. The platform will also offer four months of COBRA health insurance in the United States and four months of mental health support for international staff.

Crypto employee layoffs do not end there. Exchanges that depend on transaction fees lose their revenue streams due to a decline. It: $ 3 billion crypto-lending platform BlockFi: to cut 20% of its staff out of about 850, less than two years ago, the blockchain startup had only 150 employees. he fired 5% of his workforce or 260 employees (at the same time, undertook: $ 700 million over 20 years For Staples Center Naming Rights…). Finally, Huobi Thailand is: closure in July due to government licensing issues.

Consumer technologies are also hitting

Meanwhile Spotify: CEO Daniel Eck has not yet laid off staff, told staff he would make a cash giant Slow employment by 25%, citing market uncertainty. So far this year Spotify has closed its operations Live Audio Creator Foundation և cut his inner podcast band, Studio 4:affecting about 15 jobs.

Is a WordPress design tool Elementor: consumer technology. It saved my ass a few times, so let’s go with it. Just last week Elementor acquired Strategic, which transforms WordPress websites into Jamstack, a newer web development architecture. However, citing “rising inflation, the impending recession,” Elementor co-founder and CEO Yoni Luxenberg said the company would lay off 15 percent of its workforce, mostly in marketing.

It brings us ByteDance: – Do not worry, TikTok is good. China’s parent company TikTok was founded three years ago bought by Mokun Technology, an online game developer. Studio 101, which was part of that acquisition, closed this week, reducing about 150 employees, offering internal transfers to the other 150 employees of the studio. This means a setback in ByteDance’s race against Tencent to dominate mobile gaming.

And yet, there is more

TechCrunch’s Mary Ann Azevedo Reports::

Canadian fintech giant Wealth is simple, which was estimated at $ 4 billion last year, lays off 159 people or about 13% of its staff. The Toronto-based company has been a leader in consumer democratization of financial products, including stock trading, cryptocurrency sales and equity transfers. And now Wealthsimple seems to be an example of another company that experienced a boom in the early days of the epidemic and is now seeing business slow down.

“Mary Anne,” he said 25% reduction in the workforce to 110 employees the time Notarized, a startup that offers remote online notarization. Of course, this startup flourished at the beginning of the epidemic, but now online notarization is not in great demand.

Our own Christine Hall shared the news JOKR:on-demand food delivery company, leaving the United States focus on Latin American markets.

Christine writes:

Food delivery companies are having a hard time as funding dries up, and the rush to invest in this area, in part due to the global epidemic, has made it quite inflated for the right course of action. This became apparent when some of JOKR’s rivals began announcing their resignation. For example, in May. Gopuf, Gorillas և: Getir announced the reduction of staff.

TechCrunch took a deeper look what was happening on demand in the delivery area What does this mean for the industry at the beginning of this month?

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