ALBAWABA — Crypto exchange Crypto.com on Friday said it was laying off 20 percent of its global workforce, downsizing to control the FTX contagion, global economic downturn and ongoing events in its industry.
“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 chief executive of Crypto.com, said in a blog post.
“All impacted personnel have already been notified,” Marszalek said in the post.
According to PitchBook data, the company has 2,450 employees, signifying that about 490 employees are being laid off this time.
In July last year, the Singapore-headquartered company laid off 250 employees in order to “weather the macro-economic downturn” at the time “but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry”.
Marszalek noted: “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.”
In the broader cryptocurrency industry, many firms vying to survive the downturn in the markets are laying off workers. Coinbase, after it laid off 18 percent of its staff last June, cut 25 percent more jobs last week, while lender Genesis Global Trading laid off 30 percent of its workforce a week ago.
