Crypto.com to cut 20% of workforce citing “unforeseeable industry events”
Cryptocurrency platform Crypto.com is set to cut its global workforce by around 20% due to “ongoing economic headwinds” and “unforeseeable industry events”.
Crypto.com CEO and co-founder Kris Marszalek told employees on 13 January that several factors have led to the decision to let go of around 800 of the company’s 4,000 employees.
Despite ambitious growth at the start of 2022, which has seen the firm amass more than 70 million users, Marszalek says “that trajectory changed rapidly with a confluence of negative economic developments”.
The firm cut around 250 jobs last July in the face of a macroeconomic downturn, but Marszalek says the company “did not account for the recent collapse of FTX, which significantly damaged trust in the industry”.
Marszalek considers Crypto.com a leader in “regulatory compliance, security and privacy” and in spite of the negative developments surrounding the cryptosphere, intends to “help restore trust in our industry and further mainstream our services”.
The firm will continue to adopt “prudent financial management” but must make the reductions to its headcount in order to engender long-term success going forward, Marszalek adds.
Founded in 2016, Crypto.com allows users to buy and sell crypto through its exchange as well as buy products and services with crypto using the firm’s card offering.