Crypto winter continues to bite.
Days after Coinbase announced slashing its workforce, Crypto.com revealed today that it too would reduce its global staff by 20%. The Singapore-based crypto exchange had conducted layoffs in June and again in August.
In a letter sent to employees and shared on social media, Crypto.com co-founder and CEO Kris Marszalek said several factors, including ongoing economic headwinds and unforeseen industry events, played into the decision to reduce headcount.
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
“We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry,” Marszalek wrote. “That trajectory changed rapidly with a confluence of negative economic developments.”
The CEO said that while the company’s staff reduction last July positioned the firm to weather the economic downturn, Crypto.com did not account for the collapse of FTX.
“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 to position the company for long-term success,” he wrote.
Crypto.com joins other high-profile businesses to announce layoffs, including Coinbase, Huobi, and SuperRare Labs, during the ongoing crypto winter and collapse of Celsius, Voyager Digital, and FTX.
Despite the grim news, Marszalek remained optimistic about the future of the firm, saying that he and the senior leadership remain confident as ever in the vision and mission of the company.
“We have a significant year ahead of us as we continue to help restore trust in our industry and further mainstream our services in markets around the world,” he said said. “I am confident in our ability to build and lead the market, and I am grateful to work with you all on the journey ahead.”