• Crypto.com announced layoffs of 20% of its global workforce citing negative economic developments as the reason.
• The layoffs come just days after Coinbase announced similar layoffs.
• Huobi and Coinbase have also recently announced layoffs.
Crypto.com, one of the world’s leading cryptocurrency exchanges, has announced today that it is laying off a significant portion of its global workforce. In a statement released by the company, Crypto.com CEO Kris Marszalek cited poor market conditions and recent events in the industry as reasons for the layoffs.
The layoffs come just days after Coinbase, one of the world’s largest cryptocurrency exchanges, announced similar layoffs. Huobi, another major exchange, has also recently announced layoffs of its own.
In the statement, Marszalek said that the company had grown ambitiously at the start of 2022, riding on the incredible momentum the industry had been experiencing, but that the trajectory of the industry had changed rapidly with a confluence of negative economic developments. As a result, the company had to make the difficult decision to reduce its global workforce by approximately 20%.
Sources suggest that Crypto.com has a workforce of between 3500 and 4500 employees, meaning the 20% layoffs would affect around 700 to 900 employees. The news of the layoffs has sent mixed signals to the market, with some investors expecting a bullish run for cryptocurrencies, and the CRO token price responding positively to the news.
The layoffs come at a time when the cryptocurrency industry is still in the midst of a recovery from the bear market it experienced in late 2020 and early 2021. While layoffs are not an ideal outcome for the industry, they may be necessary in order for crypto businesses to remain competitive.
Crypto.com’s announcement serves as a reminder that the industry is still fragile and that companies should remain vigilant in order to remain profitable. While the layoffs are certainly unfortunate, it is hoped that the company will be able to make the necessary cuts to ensure its long-term success.
