(Reuters) – Crypto.com said on Friday it will cut about 20% of its workforce as cryptocurrency exchanges grapple with challenges stemming from last year’s FTX crash.
The Singapore-based company’s announcement comes amid concerns about reserves and solvency in the industry, just days after competitors Coinbase (BVMF:) (NASDAQ:) and Huobi announced plans to lay off about 20% of their staff. A source told Reuters last week that Genesis has also laid off about 30 percent of its workforce.
Crypto.com’s layoffs come after the company already cut jobs in July last year to deal with the macroeconomic crisis amid rising interest rates.
Crypto.com President Chris Marsalek said in a statement that the recent collapse of FTX has “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.”
(Written by Ria Binoy in Bengaluru)