Crypto.com has been hit by another wave of layoffs. The co-founder and CEO of the cryptocurrency exchange, Kris Marszalek, announced the decision to reduce headcount by 20%, citing ongoing economic headwinds and unforeseeable industry events.
The executive revealed that all affected employees have already been notified, adding that the reductions were not related to their performance. The crypto exchange had grown to over 70 million users worldwide.
Surviving the market downturn
The Singapore-based platform said it cut 250 jobs in the middle of last year, but the actual number was much higher. According to Marszalek, the earlier reductions helped position the company to “weather the macroeconomic downturn” but did not take into account the collapse of FTX, which significantly dented confidence in the industry.
“It is for this reason that, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions to position the company for long-term success.”
Marszalek said that Crypto.com grew ambitiously in early 2022, aligning with the trajectory of the broader industry. However, the Terra and FTX collapses set in motion a contagion effect that continued to have a massive impact on several companies, preventing new investors from entering the space in the process. As a result of negative economic developments, Crypto.com’s “trajectory” changed rapidly.
After the first series of layoffs, the exchange announced a nine-figure investment plan to renovate 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 prominent heels platform, Blockchain.com cutting 28% of its workforce. Just a few days earlier, Coinbase also announced the layoff of nearly 950 of its staff as part of its long-term strategy to cut some costs amid the relentless bear market. He had already reduced the size of the team by 18% six months ago.
Cryptocurrency conglomerate Digital Currency Group (DCG) also cut 30% of the workforce as one of its subsidiaries, Genesis, continued on the brink of bankruptcy.
Huobi and Kraken are other platforms that also experienced similar reductions. Binance, on the other hand, is planning a hiring spree this year. At the Crypto Finance Conference in St. Moritz, Switzerland, its boss, CZ, said that the exchange plans to increase the number of employees by 15-30%.
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