Crypto.com, the Singapore-based cryptocurrency exchange, announced on Friday that it would be reducing its global workforce by approximately 20%.
This is the company’s second round of layoffs in about six months. In July, the exchange already reduced its headcount to weather the macroeconomic downturn amid rising interest rates.
The layoffs at Crypto.com seem to stem from reserves and solvency across the sector. The company’s decision comes only a few days after rival exchanges Coinbase and Huobi announced their plans to lay off about 20% of their staff.
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The recent FTX collapse “significantly damaged trust in the industry,” CEO of Crypto.com, Kris Marszalek, said in a statement.
“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 in order to position the company for long-term success,” he added.
According to the official letter by Kris Marszalek, the decision to reduce headcount was not related to performance. He also expressed his gratitude to all impacted personnel for their contributions to the company.
He also emphasized that the company remains strong, with over 70 million users worldwide and a strong balance sheet.
However, the CEO acknowledged that the company has had to navigate ongoing economic headwinds and unforeseeable industry events, including the collapse of FTX. Marszalek stated that the decision to make additional reductions was necessary for the company to position itself for long-term success and to restore trust in the industry.
Despite the layoffs, Marszalek remains confident in the company’s mission and vision and its position as the leader in regulatory compliance, security, and privacy.
In related news, Coinbase’s announcement to reduce workforce by 20%.