Crypto.com Makes Additional 20% Employee Reduction

The unrest in the crypto industry is yet to settle even with the climbing price of Bitcoin (BTC) which has made investors ecstatic.

For many others, restoring stability to their business is still core, hence, the implementation of drastic measures. Singapore-based cryptocurrency exchange Crypto.com has announced that it would be reducing its headcount by 20% as the market remains bearish.

According to the message sent by Kris Marszalek, Crypto.com Chief Executive Officer (CEO), to all employees “Today we made the difficult decision to reduce our global workforce by approximately 20%. All impacted personnel have already been notified. These reductions were in no way related to performance, and we extend our deepest gratitude for all their contributions to Crypto.com.”

Marszalek explained that the layoff had nothing to do with the level of performance of the affected employees, rather it was done for “prudent financial management” and to also “position the company for long-term success.” All year round, the company has been trying to navigate through current economic headwinds and unforeseeable industry events including the implosion of the FTX exchange.

Crypto.com Continues its Layoff Trend

At the beginning of the second half of last year, Crypto.com went through a downsizing phase, letting go of 260 members of its teams.

Sometimes in October, it was rumored that the Singapore-based exchange planned on undergoing a massive layoff. Amidst severe headcount reductions in the crypto industry, many sources mentioned that over 2,000 employees have had to leave Crypto.com.

Attempting to clarify the positions which were affected in the July layoff, a company’s representative said that the impacted roles were non-corporate ranging from back-office staff to support service employees.

In this latest announcement, the affected positions are yet to be disclosed. Also, Crypo.com did not fail to mention that the liquidity crunch and bankruptcy filing of FTX contributed to its present situation. 

Based on a statement by Marszalek, that singular event led to the misplacement of trust in the digital asset industry. Since the beginning of this year, many other firms have continued with the layoff trends including the Non-fungible token (NFT) marketplace SuperRare which announced a 30% headcount reduction. Huobi has confirmed a 20% layoff in preparation for restructuring.