Protocol Labs Joins Crypto Layoff Craze, Cuts One-Fifth of Staff

• Protocol Labs – an early pioneer of blockchain and web3 technology – has let go of more than 89 people, which amounts to roughly one-fifth of its present staff count.
• The decision to let go of a number of valued members of our team is a result of the current market conditions and the macroeconomic challenges we are facing, specifically in relation to Filecoin dynamics.
• Not long ago, the company earned more than $257 million in new funding, yet all of a sudden the enterprise says it’s not able to keep its present employees onboard?

Protocol Labs Layoffs

Protocol Labs – an early pioneer of blockchain and web3 technology – has recently started layoffs. The firm announced that it will be letting go roughly one-fifth (89 people) out its present staff count due to the current market conditions and macroeconomic challenges they are facing regarding Filecoin dynamics.

Recent Funding

Despite having recently earned more than $257 million in new funding, Protocol Labs has stated that they are unable to keep their present employees onboard due to these challenging circumstances. This influx of money came through an initial coin offering (ICO), with major financial institutions such as Union Square Ventures and Sequoia Capital contributing pre-sale funds for the asset.

Employee Support

Although individuals leaving Protocol Labs will no longer be employed by them, the firm stated that these employees will still receive pay after their final date with them as well as COBRA-related healthcare benefits, immigration support and job placement support.

Crypto Market Sentiment

The situation at Protocol Lab is not unlike many other crypto-centered companies over the past few months who have had to release several people from employment due to dipping crypto market sentiment. Companies such as Huobi Global, Coinbase and Gemini have also gone through similar experiences recently.


Despite earning large sums on paper, Protocol Labs is still making tough decisions when it comes to staffing levels in order to contend with unfavorable market conditions caused in part by Filecoin dynamics. Although those leaving may receive some support from the firm post-employment, it remains clear that blockchain based companies need more stability if they wish to continue operations without significant disruption.