Crypto.com Cuts 20% Workforce as Firm Braces for Crypto Winter
The exchange is the latest among the major crypto firms to announce layoffs.
Crypto.com said it is cutting its workforce by around 20% as the crypto industry continues to reel from the effects of the ongoing crypto winter.
The firm cited the economic headwinds from the downturn in the crypto market and the FTX implosion as the reason behind the layoffs.
"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," Kris Marszalek, co-founder and CEO, wrote in a post addressing the matter.
These layoffs come after the company made headcount reductions in mid-2022 as the crypto industry slowed after the collapse of the multibillion-dollar Terra ecosystem and crypto hedge fund Three Arrows Capital.
"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," Marszalek wrote.
The exchange is the latest crypto firm to announce layoffs after Coinbase also cut nearly 20% of its staff. Blockchain.com and ConsenSys also reportedly let go off a significant portion of their staff.
Crypto.com has seen its CRO token drop by nearly 96% this year. 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.
UPDATE (Jan. 13, 06:38 UTC): Updates headline. Adds additional details and background.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.