Crypto.com will be laying off about a fifth of its workforce in a second round of layoffs within six months, citing industry-wide issues, including FTX bankruptcy, in what looks like a trying period for the once-booming sector.
Although the company “grew ambitiously at the start of 2022,” the “trajectory changed rapidly with a confluence of negative economic developments,” said Kris Marszalek, chief executive of the Singapore-based crypto-exchange. “The reductions we made last July positioned us to weather the macroeconomic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry.”
According to the CEO, the company serves “more than 70 million users worldwide” and maintains “a strong balance sheet.” However, recent “unforeseeable” developments within the cryptocurrency sector has forced it to “make additional reductions” in the workforce….