Singapore’s Crypto.com to Layoff 20% Of Its Global Workforce

Amid the mini bull run, massive layoffs between corporations are still happening. Just previously few weeks, a handful of crypto firms have reduced their workforce by a certain percentage, and the newest on the list today is Singapore-based cryptocurrency exchange, Crypto.com.

The corporate earlier today announced a world cut-off of its workforce, expressing how difficult it’s to implement this decision. Kris Marszalek, Co-Founder & CEO of Crypto.com, said in an organization update published Friday morning, “Today we made the difficult decision to scale back our global workforce by roughly 20%.”

Crypto.com Cuts Global Workforce By 20%

Since Crypto.com has between 3,500-4,500 employees, the 20% headcount reduction will impact around 700-900 employees. Per the corporate’s update, the choice to put off staff has nothing to do with the corporate’s overall performance or stability. Nonetheless, it’s more due to the hostile economic developments happening globally. 

Kris mentioned that a part of the corporate’s decision to scale back headcount includes the necessity to focus more on prudent financial management and to position the corporate for long-term success over time.

“We grew ambitiously at the beginning of 2022, constructing on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory modified rapidly with a confluence of negative economic developments,” said Kris.

Notably, Crypto.com already saw a round of layoff middle of last 12 months, but the corporate claimed today that its layoffs were done to position for the weathering of the macroeconomic downturn but was not related to the recent collapse of FTX. 

“The reductions we made last July positioned us to weather the macroeconomic downturn, but it surely didn’t account for the recent collapse of FTX, which significantly damaged trust within the industry. It’s for that reason, as we proceed to deal with prudent financial management, we made the difficult but obligatory decision to make additional reductions as a way to position the corporate for long-term success,” Kris concluded.

Rise In Massive Layoffs Continues

Crypto.com isn’t the one firm within the industry that has announced the reduction of its workforce. Corporations corresponding to Coinbase and crypto brokerage firm Blockchain.com have also cut down their workforce by nearly 50% combined.

Coinbase disclosed a round of workforce reduction on January 10, shedding 950 employees, which is about 20% of its workforce. “Your entire industry goes through a crisis of confidence, and trading volume stays very weak. This job cut reflects the present difficult environment,” Oppenheimer analyst Owen Lau said.

Blockchain.com also announced the reduction of its workforce on January 12, letting go of 28% of its workforce or about 110 employees. “The crypto ecosystem is facing significant headwinds because it course corrects from the challenges of the last 12 months,” said a Blockchain.com spokesperson. Adding, “To higher balance product offerings with demand, we’ve made the difficult decision to scale back operating costs and headcount to rightsize the corporate.”

While the workforce reduction keeps recurring between notable corporations within the industry, the crypto market has moved in a bullish trend over the past weeks, with altcoins corresponding to crypto.com token CRONOS or CRO also printing green charts. 

CRO price is moving sideways on the 4-hour chart. Source: CROUSD on TradingView.com

On the time of writing, CRONOS is up by 3.3% within the last 24 hours, whatever the workforce reduction. The token’s collected market capitalization is $1.6 billion, and currently has a 24-hour trading volume of $18.2 million.

Featured image from Unsplash, Chart from TradingView.com

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