Crypto.com set to axe a fifth of all staff
Global exchange Crypto.com has become the latest big digital asset name to cut its workforce, today announcing a 20 per cent loss of staff.
Company chiefs have cited “ongoing economic headwinds and unforeseeable industry events” as the financial factors threatening its future.
Announcing the slashing of staff this morning, co-founder and CEO Kris Marszalek said it had been a “difficult decision to reduce our global workforce”.
Marszalek was quick to state all impacted personnel had already been notified, and the cutbacks were not related to performance.
“Several factors played into our decision to reduce headcount. 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 and unforeseeable industry events,” he told workers.
“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 reductions we made last July positioned us to weather the macro economic 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.
“The entire senior leadership team and I remain as confident as ever in our mission and vision at Crypto.com, along with our unique position within the industry as the leader in regulatory compliance, security and privacy. We have a significant year ahead of us as we continue to help restore trust in our industry and further mainstream our services in markets around the world. I am confident in our ability to build and lead the market, and I am grateful to work with you all on the journey ahead.”
The news comes only days after Coinbase announced it would be cutting staff by 20%.
Coinbase is looking at losing 950 employees – even after axing almost 20 per cent in July 2022.
CEO Brian Armstrong said the cuts would bring operating expenses down by 25% for Q1 2023.