Crypto exchange Crypto.com is cutting its global workforce by 20%, it said on Friday, as it navigates ongoing economic headwinds and “unforeseeable” industry events.
This is the second major layoff at the firm, which cut hundreds of jobs in mid-last year.
“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,” Kris Marszalek, co-founder and chief executive of Crypto.com, said in a blog post.
“The reductions we made last July positioned us to weather the macro economic 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.”
As with firms in other industries, crypto companies are aggressively undertaking major decisions to survive the downturn in the broader market, which has reversed much of the gains from the 13-year bull run. Coinbase cut about 20% of its workforce earlier this week in its second round of major layoffs at the firm. Kraken said in November that it plans to lay off 1,100 people, or 30% of its workforce.
Even then Crypto.com had a especially rough last year. The firm received some criticism for its Matt Damon ad, accidentally sent an Australian customer more than $10 million in a snafu, and grappled with industry concerns over its financial health performance.
More to follow
