Crypto.com Cuts Global Workforce 20%

Digital Asset Exchange Company Crypto.com announced its intention to reduce the part of employees.

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Crypto.com it is reducing its global workforce by 20% due to the collapse of prices for virtual coins. Source: Pixabay.com

The company’s management has decided to dismiss about 20% of employees. This initiative concerns representatives of the company working all over the world. The decision to reduce the staff was made in connection with the collapse of prices for virtual coins. The negative economic process has shaken the financial well-being of many companies.

Chris Marshalek, Chief Executive Officer Crypto.com on January 13, he stated that the reduction of staff is necessary to implement the concept of reasonable financing. He called the decision to dismiss part of the staff difficultly. Chris Marshalek also said that without reducing the part of employees, the company will not be able to achieve positive results in the long term.

In the field of crypto business, more than 1,600 jobs were eliminated in the first two weeks of 2023. This situation was provoked by a catastrophic drop in token prices. Also, the current state of affairs was influenced by the bankruptcy of one of the world’s largest FTX crypto exchanges.

The announced dismissal of employees is for Crypto.com not the first in the last six months. In the summer of 2022, the company reduced the part of employees. Chris Marshalek said that the layoffs of 2022 occurred in more favorable conditions compared to the current conditions. He noted that after the collapse of the FTX, the situation worsened due to a decrease in the level of confidence in the industry.

Crypto.com last year, she received a license to operate in Singapore and was one of the most mentioned brands at the World Cup matches and Formula 1 races. The company was able to compete adequately with firms that spend billions of dollars on advertising projects and sponsorship in the sports field.

The FTX collapse has had a significant psychological impact on investors. After the bankruptcy of one of the largest cryptocurrency exchanges, they no longer have confidence in the successful future of the industry. Traders withdraw funds because they understand that further development of the situation in the industry may be negative.

As we have reported earlier, Amazon Job Cuts Will Affect over 18,000 Employees.