The cuts have hit crypto and real estate technology particularly hard this week – TechCrunch

Hey, Siri, when does the “macroeconomic downturn” turn into a “recession”?

This is another grim week for startups struggling with grim technology stocks and even worse cryptocurrency prices. But let’s start with some good news: yours children can be vaccinated against COVID-19!

Back to the bad news: We write another per week abbreviations columnbecause once again this week there was enough bad news that we need to round everything up.

This week, the start-up companies in crypto and real estate performed particularly poorly – of course mortgage interest rates are rising, fewer people want to buy housing. Bitcoin, meanwhile, is dangerously close to the $ 20,000 mark, a serious drop from the $ 60,000 + price we saw just seven months ago (I was told on Twitter that #ItsNotAboutPrices).

Unfortunately, the cuts this week went beyond these two areas, also affecting consumer technology, financial technology and food supply.

Let’s start with real estate

Our own Mary Ann Azevedo is tracking the real estate technology sector, announcing on Tuesday that publicly traded real estate brokerage platforms Redfin and compass fired a a total of 900 employees.

“I said we wouldn’t fire people unless we had to,” said Redfin CEO Glen Kelman. “We have to.”

Redfin offered the laid-off staff a 10-week basic salary, plus an additional week’s pay for each year of service, limited to 15 weeks. They will also be reimbursed for the company’s three-month health care costs so they can temporarily extend coverage.

In addition to cutting 450 jobs or 10% of staff, Compass will pause hiring and mergers and acquisitions for the rest of the year.

San Francisco-based rental platform Zumper also cut 15% of its 300 employees, which mainly affected its art, sales and customer service departments, according to The Real Deal. Earlier this month, another Bay Area brokerage firm country incision 10% of its staff as well as

Despite this industry-wide shock, some companies are still struggling. Proptech company HomeLight to raise $ 60 million and acquired startup lending Accept.inc this week.

Blockchain pain

Coinbase suffers slowly, crushing morals. After freezing the lease, then the controversial cancellation of accepted offers, the cryptocurrency exchange announced this week that it will reduce its workforce by 18%.

Remember when we said that the cuts were a little more bearable when you are not a fool to your employees? I’m sorry to inform you that senior Coinbase officials probably don’t read my work.

In a letter to employees, CEO Brian Armstrong said employees who had been fired would be notified of their status via personal emails – they would be immediately cut off 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 make them even more damaged? Cut them off their work accounts without warning and tell them they no longer have a job.

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

“There have been new uses activated by crypto, which is getting traction almost every week,” Armstrong said explain. “While we tried to do everything right, in this case it is already clear to me that we have hired too much.”

Armstrong also added that the introduction of new employees has made the team less productive in recent months.

Coinbase provides 14 weeks of compensation to affected employees plus two weeks for each year of work over 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 employees.

Crypto redundancies don’t end there. Exchanges that depend on transaction fees are losing revenue streams due to the decline. IN $ 3 billion crypto-lending platform BlockFi incision 20% of its staff of about 850 – less than two years ago, the blockchain startup had only 150 employees. Crypto.com also laid off 5% of its workforce or 260 employees (meanwhile Crypto.com is committed $ 700 million in 20 years for the naming rights of the Staples Center …). finally Huobi Thailand is exclude in July due to problems with state licenses.

Consumer technology is also affected

While Spotify still not making cuts, CEO Daniel Eck told officials that the streaming giant will do so slow hire by 25%, citing market uncertainty. So far this year, Spotify has shut it down live audio creators fund and cut your internal podcast group, Studio 4which affects about 15 jobs.

WordPress design tool Elementor consumer technology? He saved my ass a few times so we could continue with him. Only last week Elementor acquired Stratiquewhich transforms WordPress sites into Jamstack, a newer web development architecture. But citing “rising inflation and the coming recession,” Elementor co-founder and CEO Yoni Luxsenberg said the company would cut 15 percent of its workforce, mostly in the marketing department.

This brings us to ByteDance – Don’t worry, TikTok is fine. Three years ago, the Chinese-based parent company of TikTok purchase Mokun Technology, developer of online games. 101 Studio, which was part of this acquisition, closed this week, layoffs of about 150 employees, offering the remaining 150 workers in the studio internal transfers. This marks a failure in ByteDance’s race against Tencent to dominate mobile games.

And yet there is more

Mary Ann Azevedo of TechCrunch reports:

Canadian fintech giant Wealth simply, which was valued at $ 4 billion last year, is laying off 159 people – or about 13% of its staff. The Toronto-based company is a leader in democratizing consumer financial products, including stock trading, crypto asset sales and money transfers. And now Wealthsimple seems to be an example of another company that experienced a boom in the early days of the pandemic and is now seeing a slowdown in business.

Mary Ann also reported a 25% reduction in the workforce, affecting 110 employees Fr. Notarize, a startup that offers remote online notarization. Of course, this startup flourished at the beginning of the pandemic, but now online notarization is not so popular.

Our own Christine Hall shared news about JOKRAfood delivery company on request, leaving the United States to focus on Latin American markets.

Christine writes:

Food delivery companies are facing difficult times as funding has dried up and the rush to invest in the sector, in part as a result of the global pandemic, has caused it to swell up and the exchange rate needs to be adjusted. This became apparent when some of JOKR’s competitors began announcing layoffs. For example, in May, Goff, gorillas and Getir announced staff redundancies.

TechCrunch looked more closely what was going on in the delivery space on demand earlier this month and what this means for the industry in the future.

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