Crypto.com Undergoes Mass Layoffs Again

UTC by Sanaa Sharma · 3 min read
Crypto.com Undergoes Mass Layoffs Again
Photo: Shutterstock

The company hasn’t commented on what roles were largely requested to leave in the latest round of layoffs.

As the crypto winter continues to show its effects on blockchain-related companies and exchanges, another big news of mass layoffs in the industry is doing rounds. Popular cryptocurrency exchange Crypto.com has slashed its workforce by twenty percent due to present economic hardships and unforeseeable industry events.

This is, however, not the first time the Singapore-based company has fired its employees in large numbers. Crypto.com, sometime during the last year, asked 250 people to leave the company, even when reports claimed that more than two thousand people were asked to leave or were left to fend for themselves.

The company hasn’t commented on what roles were largely requested to leave in the latest round of mass layoffs but trashed the entire onus on FTX‘s fall, whose inability to safeguard people’s funds and money seriously affected the confidence people had in the cryptocurrency space.

According to Kris Marszalek, co-founder and Chief Executive Officer of Crypto.com, the company prospered exponentially at the beginning of 2022, developing an unstoppable momentum and streamlining the processes to become an industry giant. However, the flight was cut short due to the effects of negative economic developments.

For the other firms in the industries, crypto companies are strongly taking difficult and controversial decisions to stay afloat in the recent downturn of the market, which has almost reversed all the gains from the last thirteen-year bull run. The news about Coinbase reducing its employee base by twenty percent came in earlier this week in its second round of major layoffs at the firm. Kraken explained in November that it has decided to lay off more than a thousand people, which is approximately thirty percent of its entire workforce.

Even if we ignore the rather big events unfolding for the last two months in the industry, Crypto.com has still had a reasonably troublesome year. The firm was at the receiving end of some criticism for its cringe-worthy advertisement starring Matt Damon, sending ten million dollars to a random Australian by mistake, and other industry concerns over the monetary well-being of the firm.

Crypto.com, however, received a vote of confidence from auditing company Mazars, which claimed that Crypto.com’s customers’ crypto assets were entirely backed one-to-one. Interestingly, Mazars, who had also audited Binance, a day later said that they had halted their projects with crypto companies.

Marszalek, in his blog post, continues to explain that the layoffs were made last in July, which helped the company survive the macroeconomic downturn, but that hadn’t taken into account the fall of FTX which has massively hurt the industry. This is why the company is looking to focus on prudent financial management.

Blockchain News, Cryptocurrency news, News
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

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