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London-based cryptocurrency exchange Luno announced Wednesday that it will lay off 35% of its workforce, citing market turmoil that has hit the entire crypto industry.
“2022 has been a very tough year for the tech industry as a whole, and the cryptocurrency market in particular,” said Luno CEO Marcus Swanepoel. It’s impacting our organic growth and earnings numbers.”
Luno is laying off staff during what investors and traders call “crypto winter,” after Bitcoin and the broader cryptocurrency market plunged 60% from January 2022 to January 2023. It’s the latest of many cryptocurrency companies to face. The dollar’s depreciation from the market over the past year has made headlines with the collapse of cryptocurrency hedge fund Three Arrows Capital Ltd. and more recently his cryptocurrency exchange FTX Trading Ltd.
“While we have anticipated a recession and aggressively planned for a business and financing model that is resilient to some of these factors, the scale and speed of all of this events and at the same time all is a heavy burden.”
According to Luno’s LinkedIn profile, the company employs about 960 people, meaning the layoffs will affect about 336 people. The company has offices in Singapore, Cape Town, Johannesburg, Lagos and Sydney. Swanepoel explained that the layoffs will affect employees in all markets.
Luno is a subsidiary of Digital Currency Group, a cryptocurrency conglomerate caught up in the collapse of FTX. Recently, another DCG subsidiary, crypto lender Genesis, filed for bankruptcy, owing at least $3.4 billion to creditors. Genesis also announced a layoff of his 30% of its workforce earlier this month.
Swanepoel said the layoffs will not affect customers or operations, and that given the current market, the practice will be necessary to “significantly reduce” the company’s “cost base” going forward. Guaranteed.
Other crypto companies hit by job cuts due to the ongoing bear market and industry turmoil include crypto banking platform Silvergate Capital Corp., which laid off 40% of its workforce earlier this month; of Huobi cut its staff by 20%. Other crypto companies that laid off employees include crypto exchange Kraken cutting staff by 30%, Coinbase cutting staff by 18%, Crypto.com by 30% and BitMEX by 30%. there is
Image: Pixabay
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