Last Updated on January 14, 2023 by Bitfinsider

Cryptocurrency exchange Crypto.com announced a 20% reduction in its global staff on Friday as it navigates severe economic challenges and “unforeseeable” market developments.

This is the second significant layoff at Singapore-based Crypto.com, which slashed 250 workers in the middle of last year — however a source stated that more than 2,000 individuals were either let go or departed on their own own. The business did not specify which positions will be removed in the latest wave of layoffs, but blamed the failure of FTX, whose theft of client cash and insolvency “seriously eroded trust in the industry.”

“We grew ambitiously at the start of 2022, building on our fantastic momentum and coinciding with the direction of the larger sector. “With a convergence of bad economic factors, that trajectory altered quickly,” Kris Marszalek (shown above), co-founder and CEO of Crypto.com, said in a blog post.

Crypto companies, like firms in other industries, are rapidly pursuing important choices in order to survive the larger market collapse, which has erased most of the profits from the 13-year bull run. Coinbase laid off almost 20% of its workers earlier this week in its second wave of big layoffs. Kraken announced intentions to lay off 1,100 employees, or 30% of its staff, in November.

Even so, Last year was very difficult for Crypto.com. The company was chastised for its overly enthusiastic Matt Damon advertisement; it unintentionally delivered an Australian client more than $10 million in a blunder; and it dealt with industry worries about its financial health performance.

Mazars, an auditing company, gave the firm a vote of confidence, stating that Crypto.com members’ crypto holdings were completely backed one-to-one. However, Mazars, which also audited Binance, announced a halt to its work with cryptocurrency customers a few days later.

“The reductions we took last July positioned us to withstand the macro economic downturn, but it did not account for the subsequent collapse of FTX, which dramatically eroded faith in the sector. As a result, while focusing on careful financial management, we made the tough but essential choice to make more cutbacks in order to position the firm for long-term success,” Marszalek continued.