Crypto.com announced Friday that it is reducing its global workforce by 20% as it navigates challenging economic conditions and unexpected industry events.
Crypto.com, headquartered in Singapore, has announced a second major round of layoffs following the 250 job cuts made last year. Reports suggest more than 2,000 people have either been let go or left voluntarily since then. The company did not specify which roles were affected but blamed FTX’s misappropriation of customers’ funds and bankruptcy for damaging trust in the industry.
“In 2022, we grew ambitiously to capitalize on our momentum and better align with the industry trajectory. But that trajectory shifted dramatically due to an economic downturn,” said co-founder and CEO of Crypto.com Kris Marszalek (pictured).
Crypto companies are making drastic decisions to get through the market downturn, which has wiped out most of the gains from 13 years of growth. This week Coinbase cut 20% of its employees and Kraken announced in November that it would lay off 1,100 people – 30% of its staff.
Crypto.com had a tumultuous 2020, from the widely-criticised Matt Damon ad to mistakenly transferring $10 million to an Australian customer and questions over its financial performance.
Mazars, who had previously expressed confidence in Crypto.com’s crypto asset one-to-one backing, recently announced that they had paused their auditing services for crypto clients – including Binance.
“Last July’s cuts prepared us for the downturn, but FTX’s collapse shook industry trust. To ensure long-term success, we made difficult but necessary further reductions in our spending,” Marszalek said.