Crypto.com to cut 20% of its workforce

Crypto.com, the cryptocurrency platform, announced a new wave of layoffs amid weak market conditions and “recent developments in the industry”. The workforce reduction will affect about 20% of the staff, CEO Kris Marsalek said.

Today we announced the difficult decision to reduce our global workforce by about 20%.

— Kris | Crypto.com (@kris) January 13, 2023

“I remain confident in our business and in the future of cryptocurrencies, but I acknowledge that we have a lot of work ahead to help restore trust in the industry. This will take time, but we will do it,” the platform’s chief wrote.

According to him, the decision was driven by negative macroeconomic conditions and the collapse of FTX.

In June Marsalek announced a workforce reduction of 260 employees — 5% of Crypto.com’s total workforce. By the end of summer the number of laid-off workers allegedly rose eightfold.

In October, the platform slashed its headcount by about 40% — leaving more than 2,000 employees out of work, according to the press.

The trend of mass layoffs in crypto companies began in 2022 amid unfavorable market conditions. According to journalist Colin Wu, by early December layoffs had affected more than 10,000 people.

Earlier, ConsenSys said it planned to part ways with 100 or more employees.

In January 2023, Coinbase announced the layoff of 950 people as part of reducing operating expenses by 25%. In the summer of 2022, the Bitcoin exchange slashed its headcount by 18%, and in the autumn it reduced 60 employees.

Earlier, Blockchain.com said it would lay off 110 employees (28% of its staff) as part of cost-cutting measures in the crypto-winter.

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