Crypto.com cuts staff by 20% due to FTX crash

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Crypto exchange Crypto.com CEO Chris Marsalek announced another wave of layoffs due to poor market conditions following the collapse of FTX.

As Kris Marszalek explained,Several factors influenced this decision. Despite the fact that the number of Crypto.com users exceeds 70 million people, the exchange has to operate in difficult economic conditions. Marsalek noted that the June staff reduction of 5% allowed the exchange to survive the macroeconomic downturn, but the recent collapse of FTX greatly undermined user confidence in the industry and negatively affected the work of many crypto companies.

“It is for this reason that we accepted the difficultdecision on additional dismissal of employees. This is essential for sound financial management and the long-term success of the company. All employees who were laid off have already received notification. This reduction has nothing to do with their performance and we express our deep gratitude to them for their contributions to Crypto.com,” Marsalek tweeted.

Head of Crypto.com noted that the marketplace will continue to comply with regulatory requirements and ensure customer security and privacy. The exchange will make every effort to restore user confidence in the cryptocurrency industry.

A few days ago, ConsenSys alsoannounced plans to reduce the number of employees in order to optimize operating costs during the crypto winter. The Huobi platform also failed to avoid mass layoffs - its management confirmed that it was preparing to reduce the number of employees by 20%.  In December, due to pressure on financial markets, the Kraken exchange was forced to announce staff cuts.