Crypto and Real Estate Startups Lead Another Brutal Week of Tech Layoffs
Startups across crypto, real estate, and consumer tech face another devastating week of layoffs as economic conditions worsen. Major companies like Redfin, Compass, and Coinbase cut thousands of jobs amid plummeting cryptocurrency prices and rising mortgage rates.
Startups face another brutal week of layoffs as a macroeconomic downturn heavily impacts the technology sector. Crypto and real estate companies suffer the most significant losses, driven by plummeting cryptocurrency prices and rising mortgage interest rates. Bitcoin drops dangerously close to the $20,000 mark, a massive fall from its $60,000+ value just seven months ago, causing widespread panic across the blockchain industry.
In the real estate tech space, publicly traded platforms Redfin and Compass lay off a combined 900 employees as higher mortgage rates discourage home buying. Redfin's CEO admits the cuts are unavoidable, offering departing staff up to 15 weeks of base salary and continued healthcare. Rental platform Zumper also trims 15% of its workforce, while competitor Side cuts 10% of its staff earlier in the month.
The pain extends well beyond these two industries, affecting consumer tech, fintech, and food delivery startups. Crypto exchange Coinbase slashes 18% of its workforce after previously implementing a hiring freeze and rescinding accepted job offers. Despite the widespread industry shakeup, a few proptech companies like HomeLight manage to secure new funding and acquisitions, proving that not all startups are completely stalling during this turbulent period.