Crypto.com Becomes Latest Crypto Firm To Slash Workforce
Crypto.com Becomes Latest Crypto Firm To Slash Workforce.
The crypto winter continues to show massive effects on crypto firms as Crypto.com becomes the latest major company to cut its workforce.
Slashing 20% Of Workforce
Co-founder and CEO of Crypto.com, Kris Marszalek, recently made the announcement on Twitter that his company had to make the difficult decision of reducing its total workforce by about 20%.
With Crypto.com said to have somewhere around 3500 to 4500 employees, this would mean around 700 employees have been cut.
As I shared with the team today, while we continue to perform well, market conditions and recent industry events have made this the right decision for the company at this time.
— Kris | Crypto.com (@kris) January 13, 2023
Related: FTX Recovers $5 Billion In ‘Liquid’ Assets!
Marszalek explains that a number of different factors caused this major decision, citing ongoing economic headwinds due to the collapse of FTX, as well as unforeseeable industry events.
“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 CEO wrote.
“The reductions we made last July positioned us to weather the macroeconomic downturn, but it did not account for the recent collapse of FTX, which 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.”
Other Crypto Firms
This news comes just days after another major crypto exchange, Coinbase, announced their similar mass layoffs of 20% of their staff. Along with that, crypto brokerage Blockchain.com also announced the layoff of 28% of their workforce, about 110 employees in total.
Developer behind crypto wallet MetaMask, Consensys, also announced the layoff of more than 100 of their employees earlier this month.
Despite these mass layoffs from crypto firms causing some nervousness within the crypto community, CEO of crypto investment manager Galaxy Digital, Mike Novogratz, voiced his opinion that CEO’s like Coinbase’s Brian Armstrong are “doing the right thing” for cutting workforce. Novogratz says 2023 is a time for firms to “cut costs and survive this transition period.”
Related: Mike Novogratz: DCG & Gemini Crisis Won’t Affect Crypto Prices!
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