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Crypto.com will lay off 20% of the company’s workforce, or nearly 1,000 people, to adapt to the current market conditions, CEO Kris Marszalek said in a tweet on Friday.
The company’s executives have become the latest digital asset shop to cut headcount, notifying employees affected by the layoffs “as part of structural changes.” Employees were told the company is trying to cut costs and narrow its focus on more promising businesses in the cold of the cryptocurrency winter.
Marszalek said several factors influenced the decision to cut jobs. Despite maintaining a strong balance sheet, Crypto.com has had to navigate economic headwinds and unpredictable industry events, he argues. He describes an ambitious growth in early 2022 to align with the broader industry, but that trajectory is now shifting at the confluence of negative developments.
In July, Crypto.com said it had cut its workforce by 5% in an effort to cut costs, and in August, reports circulated of more unofficial layoffs. However, the CEO said these cuts do not explain the collapse of FTX, which has significantly undermined confidence in the industry.
“For this reason, as we continue to focus on prudent financial management, we have made the difficult but necessary decision to make additional cuts to position the company for long-term success,” he said. Added.
Crypto.com isn’t the only company dealing with the effects of the cryptocurrency collapse. Many other platforms are cutting hundreds of jobs amid massive FTX implosion and regulatory scrutiny. , customer demand weakened, transaction volumes declined, and signups declined.
Adding to these news was Coinbase, which cut about 950 people, or 20% of its workforce. This would mean his third layoff in less than a year. Kraken has followed his Coinbase move, letting go of his 30% of employees, about 1,100 people. Barry Silbert’s Digital Currency Group has also cut nearly 13% of his headcount in an effort to weather the crypto industry’s recession.
Yesterday, Crypto.com made headlines after telling Canadian customers that it will delist the Tether stablecoin (USDT) from trading, trading, deposits and withdrawals by the end of this month.
The Ontario Securities Commission (OSC) has banned crypto exchanges operating in the region from touching Tether (USDT), leading to a write-off of the world’s largest and most liquid stablecoin. . The decision dates back to 2021, when the stablecoin was heavily implicated in alleged market manipulation and was the only digital asset banned in the country.
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