February 5, 2023

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

Article reading time:
2 minutes.

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

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

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

“It is for this reason that we have taken the difficultdecision to furlough employees. This is necessary for prudent financial management and the long-term success of the company. All employees who have been made redundant have already been notified. This reduction has nothing to do with their performance, and we express our deep gratitude to them for their contribution to Crypto.com,” Marsalek tweeted.

Head of Crypto.com noted that the marketplace will continue to comply with regulatory requirements, as well as ensure the security and privacy of customers. 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 in a 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 the financial markets, the Kraken exchange was forced to announce staff cuts.