Popular crypto exchange, crypto.com has started its 2023 by laying off at least 20% of its workforce. The CEO of the exchange, Kris Marszalek announced the layoff in a Friday blog post. According to Marszalek, the tough decision has nothing to do with the performance of the affected employees.
The Crypto.com CEO further that it has already notified all impacted personnel of the exchange. Marszalek admitted that several factors informed the tough decision. According to him, the recent FTX collapse further compounded the bad situations for the crypto industry, thereby undermining the level of trust reposed on the the firm by users. Recall that the crypto exchange had a $10 million exposure to the troubled FTX.
More so, the CEO said the exchange’s vision to navigate through the ongoing economic headwinds and unforeseeable industry events also contributed to the layoff decision. Notably, Marszalek expressed optimism that the layoff won’t hinder the performance of the exchange. According to the exec, Crypto.com still looks to grow to more than 70 million users and maintaining a strong balance sheet.
Marszalek reflected on how the exchange grew ambitiously at the start of 2022. According to him, Crypto.com built on its incredible momentum and aligning with the trajectory of the broader industry. Meanwhile, the CEO claimed the momentum and trajectory lost its place following the invasion of the crypto winter last May.
Crypto.com and its layoff in 2022
Worthy of note that a few months after the instigation of the winter, Crypto.com announced its first layoff. The layoff which manifested last July, according to Marszalek helped the firm to weather the macroeconomic downturn. However, he noted that the strategy did not account for the recent FTX crash, which has now forced the firm to undertake another layoff. The CEO believes the exchange can be positioned for a long-term success with this additional layoff.
Additionally, the Crypto.com CEO expressed the commitment of his team in the mission to take the exchange to a glorious apogee. He described the crypto firm as a leader within the industry in terms of regulatory compliance, security and privacy. Now, Marszalek said he and other senior leadership of the firm would continue to help restore trust in the industry.
Meanwhile, as of press time, Crypto.com is yet to announce any relief packages for any of the impacted workers.
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