Crypto.com Decides To Let Go 20% Of Its Current Workforce

The crypto industry continues to stagger under an enormous wave of layoffs which have been occurring in recent times. Among the many recent corporations from the sector, Crypto.com has planned on axing 20% of its workforce.

The Singapore-based company, Crypto.com, has confirmed its decision via a blog post. In response to Co-Founder and CEO Kris Marszalek, the platform must let go of 20% of its current employees.

Crypto.com has faced significant criticism after attempting to reassure investors that the crypto exchange is in good financial health and has nothing to fret about.

The explanation for the layoffs is the present economic headwinds and industry situation. This will probably be the second major layoff carried out by the corporate. Crypto.com laid off nearly 260 employees in 2022, accounting for nearly 5% of its workforce.

Crypto.com CEO Kris Marszalek stated:

We grew ambitiously firstly 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.

The exchange platform has not specifically mentioned the positions that were laid off. The choice to fireplace employees has been attributed to broader market weakness and the FTX crash. The crash caused a misappropriation of customer funds and eventually bankruptcy, which has gone on to affect the industry considerably.

Crypto.com Says That It Continues To Perform Well

Kriz Marszalek had initially mentioned that the exchange platform maintained adequate reserves for each single coin which the platform held. Two months after that statement, the exchange couldn’t withstand the collapse of FTX without adopting measures to chop costs.

Marszalek quoted:

Today we made the difficult decision to cut back our global workforce by roughly 20 per cent. All impacted personnel have already been notified. These reductions were on no account related to performance, and we extend our deepest gratitude for all their contributions to Crypto.com.

He moreover stated:

Several aspects played into our decision to cut back headcount. While we proceed to perform well, growing to greater than 70 million users worldwide and maintaining a powerful balance sheet, we’ve needed to navigate ongoing economic headwinds and unforeseeable industry events.

Crypto.com Admits To Not Navigating Well After FTX Crash

The Founding father of Crypto.com has mentioned that although Crypto.com was doing well, there was a change in trajectory with a ‘confluence’ of negative economic developments.

He spoke concerning the layoffs in July last yr because the exchange couldn’t navigate the macroeconomic downturn. It also couldn’t gauge the damage the FTX collapse would have caused to the industry.

The autumn of FTX has been terrible for investors’ sentiments. The exchange now desires to give attention to making prudent financial decisions to administer the corporate higher, and layoffs are amongst such vital measures.

The exchange states that these additional reductions were mandatory to make sure that the corporate’s position stays profitable in the long run. For the time being, Crypto.com has 2,450 employees, and a 20 percent layoff from that population will mean that near 490 employees lose their jobs.

Bitcoin was priced at $20,700 on the one-day chart | Source: BTCUSD on TradingView

Featured Image From UnSplash, Chart From TradingView.Com

Leave a Comment

Copyright © 2024. All Rights Reserved. Finapress | Flytonic Theme by Flytonic.