As economic headwinds continue to worsen, Singapore-based cryptocurrency platform Crypto.com has been forced to carry out a second major round of layoff.
The crypto-asset exchange is reducing its global workforce by about 20% after it disclosed that such move was necessitated to make additional reductions in order to position the company for long-term success.
The company’s CEO and co-founder Kris Marszalek via a blog post stated that even though the company grew ambitiously at the start of 2022, the trajectory changed rapidly with a confluence of negative economic development as it seeks to focus on prudent financial management.
The blog post reads, “Several factors played into our decision to reduce headcount. While we continue to perform well, growing to more than 70 million users worldwide and maintaining a strong balance sheet, we’ve had to navigate ongoing economic headwinds and unforeseeable industry events.
“We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory changed rapidly with a confluence of negative economic developments.
“The reductions we made last July positioned us to weather the macroeconomic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry.
“It’s for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success”.
Meanwhile, all affected members of the workforce have been notified.
Recall that last year, Crypto.com laid off 5% of its workforce which is about 260 employees, as it took the necessary decision to ensure continued and sustainable growth for the long term.
As economic headwinds continue to worsen, which has seen the prices of virtual assets decline, Crypto.com isn’t the only crypto company that has laid off part of its workforce.
Exchanges such as Coinbase, Huobi, and Genesis have all laid off part of their workforce as they also seek to navigate the economic downturn.
Investors King understands that the collapse of one of the world’s leading crypto exchange platform FTX, sent shocking waves to the crypto industry which has also dampened investors’ confidence.
Also, the prices of digital currencies have plummeted massively as the world’s biggest cryptocurrency Bitcoin, fell about 65% last year, which saw it trade at an all-time low of $16,500.