This is not the first time for Crypto.com and Blockchain.com. Like many other exchanges, the Singaporean exchange and the historic platform, born in 2011 and also a wallet supplier, had already laid off in 2022 to deal with the slowdown in the crypto market. Here they are forced to use the same method to face a still hostile context, between difficult macroeconomic conditions and the slowness of the crypto segment, to which has been added the catastrophic FTX sequence.
Crypto.com cuts 20% of its workforce
While the company had already carried out an initial wave of layoffs last summer, Crypto.com has just announced that it will reduce its workforce again by about 20%. Chris Marszalek, his boss, cited “recent unpredictable events in the industry” to justify the decision.
The cuts we made last July allowed us to weather the macroeconomic crisis, but that didn’t take into account the recent collapse of FTX, which significantly damaged confidence in the sector. It is for this reason that, while we continue to focus on prudent financial management,
Kris Marszalek, co-founder and CEO of Crypto.com, in a blog post
Crypto.com is estimated to have between 3,500 and 4,500 employees. Consequently, between 700 and 900 employees are expected to leave the company.
Blockchain.com lays off 28% of its staff
While the company cut about 150 positions in July due to a $270 million loan to bankrupt hedge fund Three Arrows Capital, it is cutting its workforce again. The British stock exchange, which employed nearly 400 people, it will lay off 110 people, or 28% of its workforce.
The crypto ecosystem faces significant headwinds as its price corrects for last year’s challenges. (…) To better balance product offering with demand, we made the difficult decision to reduce operational costs and teams to scale the business.
Blockchain.com spokesperson quoted in CoinDesk
It has been a bloody week for the cryptocurrency industry, with US exchange Coinbase also announcing a 20% job cut.
Overall, according to the count made by CoinDesk, The cryptocurrency industry is said to have lost nearly 27,000 jobs since April 2022.
Only Binance is playing against the tide. Changpeng Zhao, its CEO, aims to increase its workforce by 15 to 30 percent during the year to meet its growth target.