• Crypto.com announces layoffs of 20% of its staff citing negative economic developments
• Coinbase and Huobi have also announced layoffs this year due to the crypto market recovery
• Crypto.com CEO Kris Marszalek cites poor market conditions and recent events in the industry as reasons for layoffs
Crypto.com, a leading cryptocurrency exchange, has announced today that it will be laying off 20% of its global workforce. This comes as the crypto market is recovering from a slump in the past year. The CEO of Crypto.com, Kris Marszalek, cited poor market conditions and recent events in the industry as the reasons for the layoffs.
The layoffs come just days after Coinbase announced similar layoffs. Coinbase, the largest cryptocurrency exchange in the US, announced earlier this month that it would be cutting over 300 jobs. Huobi, one of the world’s largest cryptocurrency exchanges, also announced layoffs of about 20% of its staff at the start of the year.
In a statement addressing the matter, Marszalek said: “Today we made the difficult decision to reduce our global workforce by approximately 20%. 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.”
Sources estimate that Crypto.com has between 3500 to 4500 employees. This means that the 20% layoffs would affect about 700 to 900 employees. The layoffs send mixed signals since the crypto market is currently on a recovery trajectory and investors are expecting some positive news.
The Cronos (CRO) token price, which is the native token of Crypto.com, has responded positively to the news. The token price is up by over 6% since the announcement.
It is unclear how the layoffs will affect Crypto.com’s operations and services. The CEO said that the company is actively working on ways to minimize the impact of the layoffs on its operations. The company will also be providing its employees with support and resources during the transition period.
The layoffs come after a challenging year for the crypto industry. The market has seen a significant drop in prices and trading volumes in the past year. Although the market is beginning to recover, the layoffs are a reminder of the volatility in the market and the need for crypto firms to be agile and adaptive.