Crypto.com will lay off 20% of its corporate workforce, or nearly 1,000 people, to adapt to current market conditions, CEO Kris Marszalek said in a tweet on Friday.
Company executives notified affected employees of the job cuts “as part of structural changes,” becoming the latest digital asset store to cut headcount. Employees have been told the company is looking to cut costs and narrow its focus on promising businesses amid the cold crypto winter.
Marszalek said several factors played into their decision to downsize. Despite maintaining a strong balance sheet, he claims, Crypto.com has had to deal with economic headwinds and unpredictable industry events. He explains that at the beginning of 2022 they were growing ambitiously, aligning with the wider industry, but the trajectory has now changed with the impact of negative events.
Crypto.com said in July that it was cutting 5% of its jobs as part of an effort to cut costs, and reports that it had unofficially laid off more circulated in August. However, the CEO said that these cuts were not the cause of FTX’s collapse, which significantly dented confidence in the industry.
“For this reason, while we continue to focus on prudent financial management, we have made the difficult but necessary decision to make additional cuts to position the company for long-term success,” he added.
Crypto.com is not alone in dealing with the effects of the cryptocurrency collapse. Many other platforms are shedding hundreds of jobs due to massive pullbacks and regulatory scrutiny following the FTX implosion. The declines were also driven by macroeconomic and geopolitical factors, which muted buyer demand, reduced trading volume and reduced filings.
At the top of that news was Coinbase, which cut about 950 jobs, or 20% of its workforce. It is the third round of layoffs in less than a year. Kraken followed Coinbase’s move and laid off 30% of its workforce, around 1,100 of its employees. Barry Silbert’s digital currency group has also cut nearly 13% of its workforce to weather the downturn in the cryptosphere.
Crypto.com made headlines yesterday after it told its Canadian customers that it would remove trading, transactions, deposits and withdrawals from Tether’s stablecoin (USDT) by the end of this month.
The delisting of the world’s largest and most liquid stablecoin comes after the Ontario Securities Commission (OSC) banned crypto exchanges operating in the region from touching Tether (USDT). The decision dates back to 2021 when the stablecoin was deeply linked to alleged market manipulation and was the only banned digital asset in the country.