Crypto.com slashes workforce by 20% over unstable industry events
January 13, 2023149 views0 comments
By Cynthia Ezekwe
Amidst unstable industry events and ongoing economic headwinds,Crypto.com has disclosed its plan of slashing its workforce by 20 per cent.
The company said that the decision was taken to be able to navigate ongoing economic headwinds, and survive the downturn in the broader market, which has reversed much of the gain from the 13-year bull run.
Prior to the layoff, the Singapore-headquartered Crypto.com reduced its workforce in July 2022, which saw the exit of 250 workers.
Speaking on the decision taken by the company to slash its workforce, Kris Marszalek, co-founder and chief executive of Crypto.com said in a blog post: “The reductions we made last July positioned us to weather the macro economic 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.’’
“Several factors played into our decision to reduce headcount. While we continue to perform well, growing to more than 70 million users worldwide and maintaining a strong balance sheet, we’ve had to navigate ongoing economic headwinds and unforeseeable industry events,’’ he added.
Marszalek also noted that the collapse of FTX worsened the situation as it damaged trust in the crypto industry, while stating that crypto.com grew ambitiously at the start of 2022, while aligning with the trajectory of the broader industry, which changed rapidly with a confluence of negative economic developments.