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Crypto.com to Cut 20% of staff, citing inflation and FTX Collapse

Crypto.com is cutting a fifth of its global workforce!

That comes as a second round of layoffs in six months, after a plunge in the value cryptocurrencies and the tectonic collapse of rival FTX.

Tweet on market inflow v outflow

Binace daily inflow v outflow of ether

The cryptocurrency exchange’s CEO, Kris Marszalek, blamed “a confluence of negative economic developments” for the reductions, which followed staff cuts.

The additional reductions were necessary to position Crypto.com for long-term success, he said in a blog post

Several hundred individuals found out on Friday that they no longer had access to Crypto.com’s systems and were being laid off, WSJ reports

  • Several crypto exchanges were hit by heavy withdrawals following the sudden collapse of FTX in November.

A misstep by Crypto.com around that time also added to its woes.

That month, Mr. Marszalek said the company had mishandled a roughly $400 million transaction, adding on his blog post that Crypto.com holds has more than 70 million users worldwide and the company maintains “a strong balance sheet.”

Crypto.com’s latest cuts come after similar moves by other crypto exchanges, lenders and other industry players. At least 1,500 crypto jobs have been axed this month alone, including about 950 that were cut at Coinbase Global Inc..