• Crypto.com has announced layoffs, with CEO Kris Marszalek citing poor market conditions and recent events in the industry as reasons.
• The layoffs affect around 20% of the company’s global workforce, or around 700-900 employees.
• Other crypto firms such as Huobi and Coinbase have also announced layoffs this year.
Crypto.com, a leading cryptocurrency exchange, has announced layoffs due to poor market conditions and recent events in the industry. The decision to reduce its global workforce by around 20%, or 700-900 employees, was made by the company’s co-founder and CEO, Kris Marszalek.
The news comes just days after Coinbase, another major crypto exchange, announced layoffs. The Cronos (CRO) token price responded positively to the news, showing that the market is optimistic about Crypto.com’s future despite the layoffs.
In a statement, 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.”
Crypto.com currently has around 3500-4500 employees, and the layoffs will affect about 20% of its workforce. This is not the only crypto firm to announce layoffs this year. Huobi and Coinbase have also made similar announcements in the past few weeks.
The news of layoffs is a stark reminder of the instability of the cryptocurrency market, and the need for a more robust regulatory framework. While the layoffs may be a necessary step towards achieving a more stable market, investors are hoping for a swift recovery.
The timing of the layoffs also indicates a shift in the industry. Companies are now focusing on cost-cutting measures in order to stay afloat and remain competitive. This may be a sign of a more mature industry, but it is also a reminder of the fragility of the crypto market.
Overall, the news of Crypto.com’s layoffs is yet another reminder of the volatility of the cryptocurrency market, and the need for a more robust regulatory framework. While the layoffs may be a necessary step towards achieving a more stable market, investors are hoping for a swift recovery.