Popular cryptocurrency exchange Crypto.com announced that it will be cutting 20% of its global workforce, becoming the latest company to implement layoffs due to economic constraints. CEO Kris Marszalek shared the news on Twitter.
Multiple causes, including economic constraints, were mentioned in the official statement as contributing to the decision to lay off personnel. The company had implemented cost-saving measures in July, which helped to mitigate the impact of the downturn.
However, the recent collapse of FTX had a significant negative impact on public perception of the industry, and the company was not able to fully prepare for it. According to the statement by Crypto.com, the layoffs were not related to employee performance, and those affected were notified in advance.
Furthermore, many cryptocurrency companies struggled to stay in business, and those that managed to survive were forced to make difficult choices in 2022. Crypto.com is among the numerous firms that have had to lay off employees in order to continue operating.
Despite the harsh conditions of the 2022 crypto winter, the industry has begun the new year on an optimistic note. Notable digital assets are showing signs of growth, and the overall market capitalization of cryptocurrencies has increased to $907 billion, with a 2.54% increase in the past day.
Layoffs At Crypto Firms During Bear Market
Although crypto firms strove to deal with the storm, many were forced to slash costs and lay off employees. In addition, The collapse of FTX Group in November has hastened layoffs at cryptocurrency firms.
Huobi previously indicated that it will lay off 20% of its workforce. Genesis Global Trading cut 30% of its personnel on January 5. Furthermore, that number amounted to roughly 62 persons, reducing the total number of employees down to 145.
Silvergate, a crypto-focused bank, has also made more layoffs. The platform decreased its workforce by 40%, laying off 200 staff. The move was made in reaction to significant Q4 withdrawals in 2022, which cut platform clients’ total deposits by 68%.
However, Coinbase is among the firms with the most layoffs in 2022. Additionally, with around 1160 people losing their employment – 4.6% of the total crypto layoffs for the year.