No Respite From Layoffs: Crypto.com Cuts 20% Workforce

Layoffs continue en masse as the crypto market reels under immense bearish pressure. 

Crypto.com has been hit by yet another wave of layoffs. The co-founder and CEO of the crypto exchange, Kris Marszalek announced the decision to reduce the headcount by 20% citing ongoing economic headwinds and unforeseeable industry events.

The exec revealed all affected employees have already been notified and added that the reductions were not related to their performance. The crypto exchange had grown to more than 70 million users worldwide.

Surviving Market Downturn
The Singapore-headquartered platform said it slashed 250 jobs in mid-last year, but the actual number was a lot higher. According to Marszalek, the previous reductions helped the company to position itself to “weather the macroeconomic downturn” but did not account for the FTX collapse, which significantly dented trust in the industry.

“It’s for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success.”

Marszalek said Crypto.com grew ambitiously at the start of 2022, aligning with the trajectory of the broader industry. However, the Terra and the FTX meltdowns set in motion a contagion effect that continued to have a massive impact on several companies, preventing newer investors from entering the space in the process. As a result of the negative economic developments, Crypto.com’s “trajectory changed rapidly.”

After the first set of layoffs, the exchange announced a nine-figure investment plan to revamp the Crypto.com Arena and Xbox Plaza facilities at LA LIVE in a bid to expand its brand.

Layoffs in Crypto
The news comes on the heels prominent platform, Blockchain.com cutting 28% of its workforce. Just days earlier, Coinbase also announced dismissing nearly 950 of its staff members as part of its long-term strategy to cut some costs amid the incessant bear market. It had already downsized the team by 18% six months ago.

Crypto conglomerate Digital Currency Group (DCG) also slashed 30% workforce as one of its subsidiaries, Genesis, continued to hover on the verge of bankruptcy.

Huobi and Kraken are some other platforms that saw similar reductions as well. Binance, on the other hand, is planning a hiring spree this year. At the Crypto Finance Conference in St. Moritz, Switzerland, its chief, CZ, said that the exchange plans to increase the number of employees by 15% to 30%.