Published: 13 January 2023, 8:11 am Updated: 13 Jan 2023, 8:11 am
Cryptocurrency exchange Crypto.com is experiencing another wave of layoffs, which will affect as much as 20% of its current workforce, according to the announcement posted by the company’s Co-Founder and CEO Kris Marszalek.
The company saw major growth at the beginning of last year, but once the prices of cryptocurrencies began to fall drastically, the entire crypto community was in shambles, and it needed to downsize.
“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.”
According to the data on LinkedIn, Crypto.com has more than 4,600 employees. This means as many as 940 people might be affected by the most recent layoffs. It is not the first wave of layoffs in the midst of crypto winter, either. The company already axed some of its workforce back in July when the dropping cryptocurrency prices started affecting it too badly.
As per Marszalek’s statement, Crypto.com was not prepared for the fall of FTX and its consequences. Marszalek explains the collapse of FTX caused people to “significantly damaged trust in the industry,” and the business needs to weather this storm.
The November 2022 fall of FTX was another tragic bankruptcy that started with the Terra/Luna crash. The bankruptcies of Three Arrows Capital, Voyager, as well as FTX and Alameda Research have all affected the crypto industry. It seems the entire crypto community still is still experiencing the aftershocks of FTX’s fall.
Crypto.com is not the only company to experience layoffs, either. Just a few days ago, another major crypto exchange Coinbase also announced layoffs that would affect a fifth of its workforce. Apparently, the company also needed to downsize by 20% for the second time, with the first major layoffs happening in June 2022 when it let go of 1,100 employees.