Crypto

Crypto.com slashes global workforce by 20% as industry issues worsen

Digital asset exchange Crypto.com is cutting its global workforce by around 20%, the industry’s latest squeeze following the virtual coin price crash.

Kris Marszalek, the company’s chief executive, said in a statement on Friday that the “difficult” decision was made out of concern for “prudent financial management” and “to position the company for long-term success”.

Crypto companies have collectively cut more than 1,600 jobs in the first two weeks of 2023, reeling from the token price rout. The collapse of the FTX the exchange also ripples through the industry and darkens its outlook. Crypto.com previously made layoffs in the middle of last year.

These cuts “did not take into account the recent collapse of FTX, which significantly damaged confidence in the industry,” Marszalek wrote in the statement. The company did not immediately respond to a request about the specific number of jobs lost in the last round.

Crypto.com, which was granted a license to operate in Singapore last year, has been one of the most visible names at FIFA World Cup games and Formula 1 races – joining rivals who are paying billions of dollars in advertising and sports sponsorships.

The collapse of FTX has shaken investors’ confidence in the financial health of the exchanges, forcing traders to withdraw funds. Marszalek was forced to address those fears in November, after learning that Crypto.com had accidentally transferred a large amount of Ether to the wrong account. The company’s reserves currently stand at about $3.5 billion, according to Nansen data, a slight increase from December.

Cronos, the native Crypto.com token, advanced 3.3% at 7:15 a.m. London.

This story was published from a news feed with no text edits.


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