Crypto.com to cut 20% of staff due to financial crisis

On Friday, the company said it would be reducing 20 per cent of its workforce due to industry challenges brought on by the collapse of FTX last year.

The Singapore-based company announced on Wednesday that it would lay off about 20 per cent of its staff due to concerns about reserves and solvency across the sector and only a few days after rival exchanges Coinbase Global and Huobi announced their plans to lay off about 20 per cent of their staff. A source told Reuters last week that Genesis had cut jobs, equating to 30 per cent of its workforce.

The layoff atCrypto.com would be its second in about six months after it reduced jobs in July last year to deal with the macroeconomic downturn due to rising interest rates.

The recent FTX collapse has damaged trust in the industry, according to Kris Marszalek, Chief Executive Officer.

We made the difficult decision to make additional reductions in order to position the company for long-term success because we continue to focus on prudent financial management. The collapse of Sam Bankman- Fried's FTX was the biggest of a string of failures in 2022 related to cryptocurrencies. An estimated 1 million creditors have been facing billions of dollars in losses due to the rout of cryptocurrencies.