The cryptocurrency platform Crypto.com has cut its workforce by about 40%, laying off more than 2,000 employees. AdAge reports, citing internal sources.
In June, the platform’s CEO Kris Marshalek announced the layoff of 260 employees, or 5% of Crypto.com’s total workforce. By the end of summer, the number of laid-off workers allegedly increased eightfold.
Former and current employees told the publication that the marketing division was cut first — the creative department was dissolved entirely within months of its creation.
According to reports, in addition to pulling sponsorship of the UEFA Champions League worth €500 million, Crypto.com also terminated contracts with the Los Angeles-based women’s football team Angel City FC and the streaming platform Twitch.
The company’s press office declined to specify the number of employees laid off. A Crypto.com spokesperson described the developments as a ‘restructuring process’ that ‘has strengthened the position during the bear market.’ He said that 60% of those laid off were contractors.
In March, FIFA announced that Crypto.com will become the official sponsor of the FIFA World Cup in Qatar.
Earlier, BitMEX, Robinhood, Gemini, Bitso and the parent company of Brazil’s exchange Mercado Bitcoin announced staffing reductions.
Coinbase will cut its staff by about 18%, crypto-lending platform BlockFi by 20%. According to reports, Huobi will lay off 30% of workers, the gaming NFT studio Immutable — more than 20%.
Hodlnaut, a liquidity-crisis crypto-lending platform, slashed its staff by 80%.
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