As a result of the collapse of FTX last year, which has caused issues for the whole cryptocurrency exchange sector, Crypto.com on Jan 13th said it will be cutting around 20% of its personnel. The news by the Singapore-based business comes amid worries over sector-wide reserves and solvency, and only a few days after rival exchanges Huobi and Coinbase Global Inc (COIN.O) revealed they would be cutting approximately 20% of their personnel.
All affected staff members have previously been informed that These cuts have nothing to do with performance.
What prompted this layoff?
Coinbase decided to cut manpower for a variety of reasons. While they are still performing well, adding more than 70 million users globally and keeping a healthy balance sheet, they have to deal with lingering economic challenges and unforeseen business occurrences. Beginning in 2022, they expanded aggressively, capitalizing on their amazing momentum and following the general industry’s growth pattern. A series of unfavorable economic factors caused that trend to abruptly alter. The concessions they took in July gave them the ability to weather the macroeconomic downturn, but they did not take into consideration FTX’s recent collapse, which did a great deal of harm to the industry’s reputation.
In order to set up the business for long-term success, they thus took the challenging but essential choice to make more cutbacks. Co-founder and CEO Kris Marszalek said that the whole senior leadership team and him at Crypto.com are still fully committed to achieving the company’s goals and maintaining their distinct position as the market leader in terms of security, privacy, and regulatory compliance.
The 2022 bear markets effect is still being felt
Not only crypto.com has been hit by turbulences of late, the cryptocurrency trading platform Coinbase said that it will lay off around 20% of its workforce as part of its latest cost-cutting measure as the bitcoin market has fallen and tech businesses have lowered their growth projections.
In a note to employees, the firm announced that it will be firing roughly 950 workers. This follows after it fired about 1,100 workers in June or nearly a fifth of its workforce at the time. In the message, Coinbase’s CEO, Brian Armstrong, said that Coinbase was being impacted by the bankruptcy of FTX, which caused chaos throughout the whole crypto market.
Many, like Coinbase, claim that they hired too quickly amid a spike in activity in the early stages of the epidemic. A number of technology businesses, including Amazon, Meta, and Salesforce, have lately announced layoffs. Many CEOs have been compelled to reevaluate their plans as a result of rising interest rates, persistent inflation, and other factors that have slowed the economy since that time.
