The CEO of Crypto.com has announced a reduction in the firm’s global workforce as the digital asset markets strive to recover.
Crypto.com co-founder and CEO Kris Marszalek announced in a new corporate blog post that he plans to reduce the firm’s personnel by 20% owing to unpredictability in the market, such as the recent high-profile collapse of crypto exchange FTX.
“We made the difficult choice today to decrease our global workforce by about 20%…
Several factors influenced our choice to cut staff. While we continue to do well, with over 70 million users worldwide and a strong cash sheet, we have had to negotiate ongoing economic challenges and unexpected industry developments.”
According to Marszalek, even though Crypto.com reduced its employment in mid-2022, it was insufficient to deal with the unexpected breakdown of FTX.
“The reductions we took last July positioned us to weather the macroeconomic downturn, but it did not account for the subsequent collapse of FTX, which dramatically eroded faith in the industry.
As a result, in order to prepare the company for long-term success, we made the tough but essential choice to make more reductions as we continue to focus on careful financial management.”
The CEO goes on to laud patient investors who stayed the course during the crypto winter, saying that they will be the ones to reap the benefits in the end.
“Today serves as a nice reminder that markets will not be down indefinitely. Those that continued to grow and HODL even when it was difficult will inevitably be rewarded.”
To begin the year, crypto markets have experienced a noteworthy comeback, with price gains in the top two major digital assets by market value, Bitcoin (BTC) and Ethereum (ETH).
At the time of writing, BTC is trading for $20,875 a 26% increase from the beginning of the year while ETH is trading for $1,529 a 27% increase in the same time frame.