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Cryptocurrency exchange Crypto.com announced that it would be cutting jobs by 20% as a result of the “significant damage” the industry has suffered due to the fall of FTX.
Crypto exchange Crypto.com has said that it would be cutting its workforce by around 20% amid the ongoing crypto winter and the ramifications of FTX. The company cited economic difficulties as the overall market downturn continues and the catastrophic collapse of FTX as the reason for its decision. In a company post, CEO and co-founder, Kris Marszalek, said:
We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory changed rapidly with a confluence of negative economic developments.
From the company’s social media profiles, it has been determined that Crypto.com has somewhere between 3,500-4,500 employees, meaning that around 700-900 employees stand to lose their jobs. The exchange had to make significant staff reductions in mid-2022 after the crypto market took a serious knock following the collapse of the Terra ecosystem and crypto hedge fund Three Arrows Capital. Marszalek addressed this in the company’s post by saying:
The reductions we made last July positioned us to weather the macroeconomic downturn, but it did not account for the recent collapse of FTX, which significantly damaged 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.
Major Crypto Firms Make Staff Reductions
Crypto.com is the latest major firm to cut jobs recently. Earlier this week Coinbase, one of the biggest and most popular crypto exchanges, announced plans to reduce its headcount significantly. A company statement said that the layoffs are a result of the “evolving industry landscape” and a need to “align our company with the current market conditions.” In a bid to cut costs, Coinbase will lay off around 950 employees. Blockchain.com, a cryptocurrency brokerage, announced on Thursday that it would be letting go of 28%, or 110 members, of its staff. The firm similarly cited macroenvironmental conditions for its decision.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.