“While we continue to do well, with over 70 million users worldwide and a strong bank sheet, we have had to negotiate ongoing economic difficulties.”
Kris Marszalek, co-founder and CEO of Crypto.com, has announced a new round of layoffs that would lower the company’s global workforce by 20%, blaming bad market conditions and “recent industry events.”
“Today, we made the difficult choice to cut our global workforce by around 20%,” Marszalek stated in a Jan. 13 corporate update.
“All affected workers have been notified. These cutbacks had nothing to do with performance, and we are grateful for all of their efforts to Crypto.com.”
Several factors, according to Marszalek, drove their choice, including “ongoing economic headwinds and unanticipated industry occurrences.” Despite the fact that the crypto exchange has over 70 million customers globally, this remains the case.
“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.”
The cryptocurrency exchange announced layoffs in June 2022, affecting 5% of its corporate personnel and affecting around 260 workers.
Marszalek said the layoffs last year helped it weather the macroeconomic slump, but it did not account for the November 2022 collapse of crypto exchange FTX, which he claimed “seriously harmed faith in the industry.”
“As we continue to focus on careful financial management, we made the tough but necessary choice to make more reductions in order to position the company for long-term success,” the company said.
Only a few days ago, Coinbase stated on Jan. 10 that it was laying off 950 employees as part of its efforts to lower operating expenses by about 25% during the prolonged crypto winter.
Kraken, Swyftx, and Huobi are among the other cryptocurrency exchanges that have announced layoffs in the recent month.