- Crypto.com is cutting its workforce by 20% due to the crypto winter and the collapse of FTX.
- This is the second round of layoffs for the company.
- Other leading crypto firms have also announced layoffs amid the downturn in the crypto market.
Crypto.com, one of the leading crypto exchange platforms, has announced that it will be cutting its workforce by around 20%. This decision comes as the crypto industry continues to reel from the effects of the ongoing crypto winter, which has seen a significant downturn in the crypto market. The firm cited the economic headwinds caused by the crypto market downturn and the recent collapse of the FTX platform as the reason behind the layoffs.
According to CEO Kris Marszalek, "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." Social media profiles indicate that Crypto.com currently has around 3500-4500 employees, which would make the current round of layoffs impact around 700-900 employees.
These layoffs come after the company made headcount reductions in mid-2022, as the crypto industry slowed following the collapse of the multi-billion dollar Terra ecosystem and crypto hedge fund Three Arrows Capital. Marszalek added, "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."
Crypto.com is not alone in making this decision, as other leading crypto firms have also announced layoffs in recent months. Coinbase, Blockchain.com and Consensys have all reportedly let go of a significant portion of their staff. The crypto market has been struggling this year, with Crypto.com's CRO token dropping by nearly 96%. Additionally, the number of active addresses of CRO has dropped from 2,114 at the start of the year to around 640 as of this month.
The crypto industry is going through a difficult period, and it remains to be seen how it will recover. However, companies like Crypto.com are taking steps to ensure that they are in a strong position to weather the storm and emerge as leaders in the industry.