Crypto.com announced that it will be further reducing its global workforce by approximately 20% as it navigates “ongoing economic headwinds and unforeseeable industry events”.
The recent layoffs were blamed on the collapse of now-bankrupt crypto exchange FTX which Crypto.com said “significantly damaged trust in the industry”.
The crypto industry has witnessed the largest number of layoffs ever recorded within a year with approximately 23,600 employees lost jobs in the crypto sector as of December 9 last year.
Crypto.com added that it will continue to “focus on prudent financial management” in order to position the company for long-term success.
“The entire senior leadership team and I remain as confident as ever in our mission and vision at Crypto.com, along with our unique position within the industry as the leader in regulatory compliance, security and privacy.
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. 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.”
said Kris Marszalek, Co-founder and CEO in a message provided to all Crypto.com employees on 13 January 2023.
The crypto exchange had officially announced in June 2022 that it had let go 260 of its employees which account for 5% of its global workforce.
However, several reports emerged saying that the layoffs did not end there as hundreds more employees were quietly let go and as their numbers were not publicised, it is difficult to estimate exactly how many employees were laid off during that period.
According to The Verge, when Marszalek was asked about the unpublicised layoffs, he refused to divulge further details on the rumoured layoffs.
He was quoted as saying,
“I want you to understand that this is a private company, and we don’t have to follow the public US company playbook … There doesn’t have to be an announcement, there doesn’t have to be a blog post. Of course, everybody’s always interested in the number.
A number makes for a great headline, it’s a great thing to gossip about. [But] as co-owners of this company, you should ask yourself, ‘is it in my interest for this number to be out there?’ And I’ll leave it at that.”
