Crypto.com CEO Announces 20% Staff Cut, Ignored FTX Collapse

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Crypto.com co-founder and CEO KrisMarszalek has announced a new round of layoffs that will cut its global workforce by a further 20%, citing poor market conditions and recent industry events.

Today, we made the difficult decision to reduce our global workforce by approximately 20%, Marszalek said in a Jan. 13 company update.

As I shared with the team today, while we continue to perform well, market conditions and recent industry events have made this the right move for the company at this time.

Crypto.com Crisis (@kris) January 13, 2023

All affected personnel have already been notified. These reductions were in no way performance related, and we express our deepest gratitude for all of their contributions to Crypto.com.

Marszalek said several factors influenced his decision, including ongoing economic headwinds and unpredictable industry events. This is despite the crypto exchange growing to over 70 million users worldwide.

We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the wider industry. This trajectory changed rapidly with a confluence of negative economic developments.

The crypto exchange announced smaller layoffs in June, reducing its workforce by 5% to about 260 people.

Marszalek said last year’s layoffs have positioned him to weather the macro downturn, but that didn’t take into account the collapse of crypto exchange FTX in November, which he said had significantly damaged confidence in the industry.

It is for this reason that, as we continue to focus on prudent financial management, we have made the difficult but necessary decision to make further reductions in order to position the business for long-term success.

Related:Crypto Layoffs Rise as Exchanges Continue to Be Ravaged by Current Bear Market

A few days earlier, crypto exchange Coinbase announced that it was cutting 950 jobs to cut operating costs by around 25% amid the ongoing crypto winter.

Kraken, Swyftx, and Huobi are other crypto exchanges that have announced layoffs over the past month.

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