Crypto firm Luno lays off 35% of its workforce
Global cryptocurrency firm Luno has cut its workforce by 35%, impacting employees across all regions it operates in.
In an internal message shared with Luno employees, Marcus Swanepoel, the company’s co-founder and CEO, cites the global economic downturn and an “even bigger” downturn in the tech sector, as well as a crypto winter “with a series of shocks” including the collapses of FTX and Three Arrows, as reasons behind the layoffs.
“Luno unfortunately hasn’t been immune to this turbulence, which has affected our overall growth and revenue numbers,” Swanepoel says.
“While we anticipated a downturn and proactively planned ahead with a business and funding model that can be resilient to some of these factors, the sheer scale and speed of all of this happening, and all at the same time, has put significant strain on our original plan.
“What this means in practice is that in addition to streamlining our strategy to focus on our core strengths, we need to also substantially decrease our cost base – which includes employee headcount in all of our markets – in order for us to be set up for success going forward.”
Luno adds that the layoffs will not impact its customers’ funds or operations. It joins a string of crypto firms cutting down their workforces in recent months, including Kraken and Coinbase, among others.