Crypto.com Announced Layoffs Of 20% Due To FTX Collapse

Key Points:

• After cutting staff in June of last year, Crypto.com would be making its second round of layoffs in around six months.
• As the crypto company continues to suffer from the impacts of the ongoing crypto winter, Crypto.com CEO announced that the company is reducing its employment by about 20%.

The CEO of Crypto.com, Kris Marszalek, announced on Friday that the company would be laying off around 20% of its employees as a result of industry-wide difficulties brought on by the failure of FTX and the crypto winter last year.

According to Owler data, Crypto.com employs between 3500 and 4500 people. This would mean that 700–900 employees will be affected by the current wave of layoffs.

Following the failure of the multi-billion dollar Terra ecosystem and the crypto hedge fund Three Arrows Capital, Crypto.com reportedly reduced its headcount in the middle of 2022. The crypto exchange at the time laid off 260 employees or 5% of its staff.

According to Marszalek, the decision was influenced by a number of things, including ongoing economic headwinds and unexpected industry happenings.

“We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of negative overall industry. That trajectory changed with a confluence economic developments. 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.”

This is one of the notable staff cuts from the beginning of the year to now. The announcement from Crypto.com comes shortly after rival exchanges Coinbase Global and Huobi said they would be laying off employees due to worries regarding reserves and solvency in the industry.

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Harold

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