Popular exchange Crypto.com announced that it will be laying off 20% of its global workforce. The firm joins a list of companies that are implementing layoffs due to economic constraints. Kris Marszalek, Crypto.com CEO mentioned this on Twitter and shared the decision with his followers.
According to the official announcement, several factors played into the organization’s decision with economic headwinds being one of them. The cutbacks from last July gave it the ability to withstand the macroeconomic slump. However, it did not take into account the effects of FTX. The collapse of FTX gravely undermined public confidence in the sector.
Crypto.com’s announcement noted that the layoffs were in no way based on performance, and impacted personnel have been informed ahead of time.
Crypto winter still looms large
In 2022, major crypto firms have gone underwater, and the ones that survived had to make difficult decisions to stay afloat. Crypto.com is part of a long list of firms that have let go of employees to stay alive.
Earlier, Huobi announced that it would let go of 20% of its employees. On January 5, Genesis Global Trading decreased its workforce by 30%. Additionally, that number came to about 62 people, bringing the total number of employees down to 145.
Silvergate, a crypto-centric bank, has also implemented additional layoffs. The platform reduced its personnel by 40% and removed 200 employees. The decision was possibly taken as a result of the significant Q4 withdrawals in 2022, which reduced platform users’ total deposits by 68%.
Amazon, one of the global tech giants, recently announced that it would let go of 17,000 employees.
The 2022 crypto winter was one of the harshest periods. Nonetheless, the industry has entered the new year on a positive note. Major tokens and coins are rallying, and the global cryptocurrency market cap has risen to $945 billion, up by 1.9% in the last 24 hours.