Crypto.com is making cuts that will involve 20% of its team, signaling deeper challenges ahead.
In Brief
Crypto.com lays off 20% of its workforce
According to Kris Marszalek, the Co-Founder and CEO of Crypto.com, the downturn following the FTX collapse has severely impacted the company's reputation as trust in cryptocurrency has eroded.
In a significant development, Crypto.com is undergoing layoffs that will touch nearly 20% of its staff, highlighting the ongoing struggles in the market. announcement This statement comes directly from Kris Marszalek, the company’s Co-Founder and CEO.
The company had experienced significant growth at the beginning of the previous year, but once cryptocurrency values plummeted, it triggered widespread turmoil in the industry, leading them to make tough decisions regarding their workforce.
Marszalek noted, \"At the commencement of 2022, we were aggressively expanding and riding a wave of success that aligned us with the industry's overall growth. However, that positive path shifted swiftly due to several unfavorable economic events.\"
According to the data on LinkedIn With a workforce exceeding 4,600, Crypto.com's latest layoffs could impact up to 940 jobs. This isn't the first round of cuts; earlier in July, the company had already reduced its staff due to the ongoing 'crypto winter' effects.
According to Marszalek, Crypto.com was caught off guard by the FTX crisis and its repercussions. He emphasized that the FTX collapse significantly eroded public confidence in the sector, and the organization now needs to navigate through this challenging phase.
The downfall of FTX in November 2022 was a disastrous turn of events, triggered by the crash of Terra/Luna. The fallout from bankruptcies like those of Three Arrows Capital and Voyager, alongside FTX and Alameda Research, has left lasting scars on the crypto landscape. It appears that the entire cryptocurrency ecosystem is still grappling with the ramifications of that chaos.
Crypto.com isn't alone in its layoffs; just recently, Coinbase announced similar reductions affecting one-fifth of its workforce. They've had to cut down by 20% for the second time now, the first layoff occurring in June 2022 when they let go of 1,100 staff members. announced The trend of big tech declines continues with Meta's substantial layoffs, impacting around 11,000 employees.
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Disclaimer
In line with the Trust Project guidelines Karolina is a passionate writer and journalist with a background in literature. She thrives on innovative technological solutions and artistic expression, often finding NFTs to be a perfect blend of both worlds. Beyond her profession, she enjoys nurturing her indoor plants, appreciates vintage fashion, and indulges in gaming.
