Crypto.com cuts global workforce 20% as industry woes deepen

livemint.com:

Digital-asset exchange Crypto.com is reducing its global workforce by about 20%, the latest retrenchment in the sector following a collapse in virtual-coin prices.

Kris Marszalek, the firm’s chief executive officer, said in a statement Friday that the “difficult" decision was made amid a focus on “prudent financial management" and “to position the company for long-term success."

Crypto businesses collectively have shed more than 1,600 jobs in the first two weeks of 2023, shaken by the rout in token prices. The collapse of the FTX exchange is also rippling through the industry and dimming its outlook. Crypto.com previously made layoffs in the middle of last year.

Those reductions “did not account for the recent collapse of FTX, which significantly damaged trust in the industry," Marszalek wrote in the statement. The company didn’t immediately respond to a request for the specific number of jobs lost in the latest round. 

Crypto.com, which last year got a permit to operate in Singapore, has been one of the most visible names at soccer World Cup matches and Formula 1 races — joining rivals that are pouring billions of dollars into advertising and sports sponsorships.

FTX’s collapse shook investor confidence in exchanges’ financial health, causing traders to withdraw funds. Marszalek was forced to address such fears in November, following news that Crypto.com had accidentally transferred a large amount of Ether to the wrong account. The company’s reserves currently stand at about $3.5 billion, according to data from Nansen, a slight increase from December. 

Cronos, Crypto.com’s native token, advanced 3.3% at 7:15 a.m. in London. 

This story has been published from a wire agency feed without modifications to the text.