Crypto.com will lay off 260 people, or 5% of its corporate workforce, as the markets continue to head into a downturn, CEO Kris Marszalek said in a tweet on Saturday.
In a Twitter thread, Marszalek described the layoffs as a "difficult and necessary" decision to "ensure continued and sustainable growth for the long term." The CEO also referenced the current "market downturn," alluding to the 2018 crypto bear market and the company's "focus on building" during the 2018-19 crypto winter.
During that period, the price of Bitcoin tumbled about 65%, falling from its then all-time-high of almost $20,000 in December 2017 to below $7,000 in February 2018.
“We will continue to evaluate how to best optimize our resources to position ourselves as the strongest builders during the down cycle to become the biggest winners during the next bull run,” Marszalek wrote.
That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term by making targeted reductions of approximately 260 or 5% of our corporate workforce.
— Kris | Crypto.com (@kris) June 11, 2022
On Monday morning, Crypto.com was the 14th largest cryptocurrency exchange by spot volume, having done $1.3 billion in trading volume over the past day. In the past six months, Crypto.com has been spending heavily on marketing.
The Singapore-based exchange spent an estimated $700 million to become the exclusive crypto exchange sponsor of the FIFA World Cup 2022, paid $100 million to have Matt Damon star in a Super Bowl commercial, and spent $700 million putting its name on what was formerly known as the Staples Center in Los Angeles.
But the heady days of Fall 2021 have faded.
As of Monday morning, Bitcoin was trading at around $23,500, down 65% from the all-time high of $68,789.63 it set in November 2021. The total market capitalization of all cryptocurrencies has now slipped below $1 trillion to $983 billion, down from $3 trillion in November, according to CoinMarketCap.
Crypto.com isn't the only large cryptocurrency firm that's slashed its workforce to prepare for crypto winter.
Gemini has laid off 10% of its staff and Coinbase first implemented a hiring freeze and then rescinded recently extended job offers. In Latin America, Bitso, Mexico's largest crypto exchange, laid off 10% of its staff. And in Argentina, crypto exchange Buenbit has laid off 45% of its employees.