By
Bhushan Akolkar
April 16th, 2024
Even though the company’s plan to be the official sponsor of the 2022 FIFA World Cup is still on the cards, the exchange has sculpted out a few of its hospitality packages.
With the bear market continuing its tumultuous run in the crypto space, cryptocurrency exchange Crypto.com has been slashing down a significant chunk of its employee base and is also downsizing on brand collaborations.
The firm has reduced its employee base by thirty-forty percent, laying off over two thousand individuals since the last summer. Initially, the reporting had placed the numbers at over a thousand when the Chief Executive Officer Kris Marszalek claimed that there had been job cuts of around three hundred individuals (around five percent of the total workforce). This was also the time when BlockFi CEO Zac Prince tweeted about a slash down of over twenty percent of the workforce.
Moreover, Crypto.com’s stellar marketing plans and strategies have been placed on a lower priority. The company recently withdrew from a five-year sponsorship deal worth $495 million with UEFA Champions League. Crypto.com however, walked out of the deal because of the regulatory considerations in the United Kingdom, France, and Italy, with legal troubles hindering the extent of its licenses from functioning.
Over the past year, the Singapore-based exchange had adopted a rather aggressive approach toward sports campaigns and advertisements. The company recently signed a twenty-year naming deal with the Staples Center in LA for $700 million. That is not all. The company also shed money on a $100 million advertisement featuring Matt Damon, seeking to cash in on the surge in the cryptocurrency market.
However, the firm is now pulling back on several of its deals including the LA-based soccer team Angel FC. The company has also withdrawn from its sponsorship deal with the esports league of streaming service Twitch.
Even though the company’s plan to be the official sponsor of the 2022 FIFA World Cup is still on the cards, the exchange has sculpted out a few of its hospitality packages.
A Crypto.com spokesperson commented on the recent lay-off spree explaining that the company went through a recent restructuring procedure that ended in July, which was supposed to bolster its place in the background of a bear market climate.