Kris Marszalek, CEO of Crypto.com has announced a new wave of staff layoffs that will reduce its global workforce by another 20%.
Kris Marszalek, the co-founder and CEO of Crypto.com, has announced a new round of staff layoffs that will further reduce its global workforce by 20%. He cited weak market conditions and “recent industry events” in his announcement.
“Today we made the difficult decision to reduce our global workforce by approximately 20%,” Marszalek said in a company update on Jan. 13.
According to Marszalek, a number of variables, including “ongoing economic headwinds and unanticipated business occurrences,” affected their choice.
Despite the cryptocurrency exchange having more than 70 million customers globally, this was the case.“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 cryptocurrency exchange reduced its employment by 5%, or about 260 employees, in June by announcing minor staff reductions.
The layoffs from last year, according to Marszalek, helped the company prepare for the macroeconomic downturn, but they did not take into consideration the collapse of the cryptocurrency exchange FTX in November, which he claimed “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.”
Only a few days prior, cryptocurrency exchange Coinbase revealed it was laying off 950 employees in order to lower operating expenses by about 25% in the midst of the ongoing crypto winter. Kraken, Swyftx, and Huobi are a few other cryptocurrency exchanges that have disclosed layoffs in the past month.
