• Crypto.com announced layoffs, citing negative economic developments and citing poor market conditions in the industry.
• The company’s CEO said that they are reducing the global workforce by 20%.
• Other crypto firms such as Huobi and Coinbase have also recently announced layoffs.
Crypto.com has recently announced that it will be laying off some of its staff in order to reduce its global workforce. The announcement was made by the company’s CEO, Kris Marszalek, who cited poor market conditions and recent events in the industry as the main reasons for the layoffs. The reduction in staff will affect approximately 700 to 900 employees, representing a 20% decrease in the company’s workforce.
This news follows the announcement of similar layoffs by other major crypto firms such as Huobi and Coinbase. Huobi announced layoffs at the start of the year, while Coinbase announced layoffs a few days ago. These layoffs come at a time when the crypto market is on a recovery trajectory, leading to speculation about the underlying reason for the staff reductions.
The CEO of Crypto.com said that the decision was made due to a „confluence of negative economic developments“ in the industry. The company had grown rapidly in the beginning of 2022, and the CEO said that they had been expecting a positive trajectory in the industry, but that the recent events had forced them to make the difficult decision to reduce their workforce.
The news of the layoffs has had an impact on the price of the Crypto.com token, the Cronos (CRO). The price of the token has responded positively to the news, indicating that the market does not view the layoffs as a sign of a major crisis in the industry.
Nevertheless, the layoffs are a reminder of the uncertainty that exists in the industry, and of the importance of making prudent decisions when investing in crypto firms. As the industry continues to grow, it is likely that more layoffs will be seen in the future, as companies adjust their operations to ensure their long-term profitability.
