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Crypto.com CEO announces 20% staff cut, 'did not account' for FTX collapse

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 152 Views

“While we continue to perform well, growing to more than 70 million users worldwide and maintaining a strong balance sheet, we’ve had to navigate ongoing economic headwinds.”

The co-founder and CEO of Crypto.com, Kris Marszalek, has announced a new wave of staff layoffs that will reduce its global workforce by another 20%, citing poor market conditions and “recent industry events.”

“Today we made the difficult decision to reduce our global workforce by approximately 20%,”  Marszalek said in a company update on Jan. 13.

“All impacted personnel have already been notified. These reductions were in no way related to performance, and we extend our deepest gratitude for all their contributions to Crypto.com.”

Marszalek said several factors influenced their decision, including “ongoing economic headwinds and unforeseeable industry events.” This was despite the crypto exchange growing to more than 70 million users worldwide.

“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.“

The crypto exchange announced smaller staff layoffs in June, cutting 5% of its workforce, approximately 260 people. 

Marszalek said the layoffs last year positioned it to weather the macroeconomic downturn, but it did not account for the collapse of crypto exchange FTX in November, which he said “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.”

Related: Crypto layoffs mount as exchanges continue to be ravaged by the prevailing bear market

Only days earlier, crypto exchange Coinbase announced that it was cutting 950 jobs to reduce operating costs by around 25% amid the ongoing crypto winter.

Other crypto exchanges to announce layoffs in the last month include Kraken, Swyftx and Huobi.

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