Chris Marsalek, Co-Founder and CEO of Crypto.com, has announced a new wave of layoffs that will reduce the global workforce by an additional 20%, due to adverse market conditions and “recent industry events.”
“Today we made the difficult decision to reduce our global workforce by approximately 20%,” Marsalek said in a company statement published Jan. 3.
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.
– Chris | Crypto.com (kris) January 13, 2023
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.
– Chris | Crypto.com (kris)
“All affected individuals have already been notified. These reductions were in no way related to your performance and we express our deepest gratitude for all of your contributions to Crypto.com.”
Marsalek said several factors influenced the decision, including “ongoing economic headwinds and unexpected industry events.” The cuts come despite the cryptocurrency exchange reaching more than 70 million users worldwide.
Our ambition has grown in early 2022, building on our incredible momentum and aligning ourselves with the trajectory of the industry as a whole. This trajectory changed rapidly with a confluence of negative economic factors.”
The cryptocurrency exchange announced smaller layoffs in June, cutting 5% of its workforce. Equivalent to about 260 individuals.
Marsalek said last year’s layoffs made it weather the macroeconomic crisis, but failed to account for the effects of the November FTX crash, which he said “significantly damaged confidence in the industry.”
“That is why, as we continue to focus on prudent financial management, we have made the difficult but necessary decision to make further cuts to position the company for long-term success.”
Just a few days ago, cryptocurrency exchange Coinbase announced that it will cut 950 employees to reduce operating costs by about 25% amid the current crypto winter.
Other cryptocurrency exchanges that announced layoffs in the past month include Kraken, Swyftx, and Huobi.