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Crypto.com Slashes Workforce by 20% as Exchanges Brace for Another Crypto Winter

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By Augustine Mbam - - 5 Mins Read
Crypto.com crash
Credit: Margin ATM

Kris Marszalek, Co-Founder, and CEO of Crypto.com, has broken the news of their company's decision to reduce the number of employees by 20%. In an official memo, Kris Marszalek said the ongoing economic turmoil and crypto winter played a major role in their decision. 

It has been a rough year for many crypto companies; the negative crypto market and the FTX scandal made many firms make harsh decisions against their employees.

The latest Crypto.com news isn't the only occurrence of crypto companies cutting down their workers in the new year, as Coinbase has already announced its decision to lay off 950 workers

"Several factors played into our decision to reduce headcount. While we continue to perform well, growing to more than 70 million users worldwide and maintaining a strong balance sheet, we’ve had to navigate ongoing economic headwinds and unforeseeable industry events. We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory changed rapidly with a confluence of negative economic developments," Kris Marszalek, Co-Founder, and CEO of Crypto.com, said in the memo.

The bearish crypto market has also taken its toll on Crypto.com coin price, slashing its value and users. Factors like these were the major contributors to the decision by Crypto.com. About 700-900 employees will be laid off after this announcement as the company reportedly has about 3500 to 4500 employees. 

FTX Scandal Contributed to Crypto.com's Decision 

The CEO of Crypto.com highlighted the FTX scandal as part of the reasons his company has suffered over the past year. 

Despite reducing their company's headcount around July 2022, Crypto.com's CEO labeled the FTX incident as reducing people's trust in their company and the whole cryptocurrency industry.

"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. It’s for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success," Crypto.com CEO said. 

Kris Marszalek reiterated that his company is still committed to restoring trust within the crypto industry after the FTX issue. He also mentioned the ability of Crypto.com to take the lead in the crypto industry. 

" We have a significant year ahead of us as we continue to help restore trust in our industry and further mainstream our services in markets around the world. I am confident in our ability to build and lead the market, and I am grateful to work with you all on the journey ahead," Kris Marszalek added. 

Crypto.com Coin Price in Shambles 

Crypto.com coin Cronos (CRO) has suffered a major downturn in the crypto market. CoinDesk reported it is down by more than 96% since last year. 

Apart from its price, Cointelegraph reported that the cryptocurrency's funding rates have reduced by more than 3%. Funding rates are recurring payments made by traders based on the difference between the spot and futures market prices. 

In the past 24 hours, Cronos has increased by more than 4%, and investors will likely want it to continue in the pattern after a bad year.