Crypto exchange Crypto.com announced on Friday that it will be making significant reductions to its global workforce, cutting 20% of its employees.
This marks the second major layoff at the Singapore-based company, which made similar cuts in mid-2021. The cause of this round of layoffs is attributed to the recent collapse of FTX, which had a detrimental effect on the trust in the industry.
According to CEO Kris Marszalek, Crypto.com had been growing ambitiously at the start of 2022, building on its momentum and aligning with the trajectory of the broader industry. However, the company's trajectory changed rapidly with a confluence of negative economic developments.
As with firms in other industries, crypto companies are aggressively undertaking major decisions to survive the downturn in the broader market, which has reversed much of the gains from the 13-year bull run. Other crypto companies have also undergone layoffs, such as Coinbase and Kraken, in an effort to survive the current economic climate.
Despite the challenges, Crypto.com says it remains committed to positioning the company for long-term success through prudent financial management, adding that the company has made difficult but necessary decisions to ensure its continued growth and sustainability in the future.