Crypto.com cuts 20% of its staff, citing economic obstacles and the collapse of FTX

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Crypto.com is cutting a fifth of its global workforce in a second round of layoffs in six months after many cryptocurrencies fell in value and rival FTX collapsed.

Kris Marszalek, co-founder and CEO of the cryptocurrency exchange, blamed “a confluence of negative economic developments” for the cuts, which followed the staff cuts that took place in July. The additional cuts were necessary to position Crypto.com for long-term success, he said in a blog post on Friday.

Marszalek did not specify how many employees were laid off. Several hundred people discovered on Friday that they no longer had access to Crypto.com’s systems and were being made redundant, according to people familiar with the matter.

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Crypto.com has purchased the rights to rebrand the arena that is home to the Los Angeles Lakers in 2021. (Kirby Lee-USA TODAY Sports/Reuters Photos)

In the middle of last year, Singapore-based Crypto.com said 260 people, or around 5% of its staff, would be made redundant. Marszalek said in his blog post on Friday that the recent implosion of rival exchange FTX has severely damaged confidence in the industry.

Several crypto exchanges were hit by heavy pullbacks following the sudden collapse of FTX in November. A Crypto.com misstep around this time also added to its woes. That month, Marszalek said the company mishandled a roughly $400 million transaction.

Marszalek’s blog post on Friday said Crypto.com has more than 70 million users worldwide and the company maintains “a strong balance sheet.”

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Several crypto exchanges were hit by heavy pullbacks following the sudden collapse of FTX in November. (REUTERS/Dado Ruvic/Illustration/Reuters)

A Crypto.com spokesperson said in response to questions: “The layoffs will not impact our ability to continue to be a leader in compliance and security, which continue to be critical in our efforts to restore confidence in the industry”.

Crypto.com’s latest cuts come after similar moves from other crypto exchanges, lenders and other industry players. At least 1,500 crypto jobs have been cut this month alone, including around 950 that were cut at Coinbase Global Inc. this week and cuts at Huobi, another exchange operator. The companies cited the cryptocurrency price rout as the reason for the layoffs.

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Crypto.com has garnered attention for its flashy marketing campaigns in recent years. It featured actor Matt Damon in a commercial in late 2021 and ran commercials at the Super Bowl and the recent FIFA World Cup in Qatar. The company previously bought the rights to rename the arena that is home to the Los Angeles Lakers to Crypto.com Arena, and is also a sponsor of Formula 1.

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