Crypto.com is reportedly laying off an unexpected number of employees

Early in May, crypto exchange Crypto.com was marking major milestones. The exchange, which just announced the 50-million user mark at the time, was busy with Formula One race for which it was the title sponsor. However, as Terraform Labs’ native tokens UST and LUNA crashed the following week, the marketing strategy of Crypto.com began to unravel.

During the subsequent months, the exchange gradually toned down a significant number of partnerships that were designed to attract the attention of the general public to the brand. Interestingly, as TheCoinRise reported, Crypto.com abandoned the $495 million UEFA Champions League sponsorship deal.

According to former and current employees, the exchange also experienced a headcount reduction on a scale that had not been previously reported. Between 30 and 40 percent of the workforce that had been employed prior to the summer left the company between June and August, and the vast majority of these departures were due to layoffs.

Many sources have independently reported that just over 2,000 employees had departed the company since layoffs began. It was earlier stated that at most around 1,000 employees at Crypto.com were terminated from their positions.

Crypto.com under bear market’s wave

The recent reports that the company laid off hundreds of additional employees after officially disclosing 260 layoffs earlier in the summer present an even greyer image than these new numbers, which portray an even gloomier picture than the recent revelations. Since Crypto.com is a privately held firm, it is not required to make any disclosures on any changes to its employee count. A company’s spokesperson stated:

“As part of that restructuring, we made the difficult decision to conduct targeted job reductions, 60% of those roles came from non-corporate, back office and support services tied to trade volumes.”

Despite the gloomy picture, the exchange has been aiming to secure regulatory approval from different agencies around the world including that of France.