Crypto.com lays off ~20% of its global workforce, citing the macro-economic downturn and FTX's implosion, after cutting 260 employees, or ~5%, in June 2022
The exchange is acting amid the macroeconomic downturn and FTX’s implosion. Coinbase had also announced a further roughly 20% workforce reduction days earlier, tying it to lower operating expenses.
First-order effects
Crypto.com immediately reduces its global payroll by about one-fifth, extending a workforce retrenchment that had already begun in 2022.
Employees and teams retained after the earlier cuts face a smaller organization following a period in which sources reported thousands of departures.
Repeated reductions shift Crypto.com’s near-term operating model away from the headcount implied by its earlier expansion, concentrating execution in the teams that remain.
Third-order effects
If successive cuts become the industry pattern, crypto exchanges will compete less on organization-building capacity and more on sustaining operations through market and confidence shocks.
Crypto.com’s later AI-integration-linked workforce reduction suggests that cyclical cost cuts can evolve into a longer-running reassessment of which roles exchanges retain.
The trend: Crypto exchanges are moving from expansion-era staffing toward leaner operating structures shaped first by market stress and increasingly by automation priorities.
I remain as confident as ever in our business and in the future of crypto, but I recognize we have a lot of work to do to help restore trust in the industry. It will take time, but we will get it done.
It's a real bad look to blame your layoffs on FTX! Especially when you're also an exchange that no one knew about until you bought a big sports arena! It's no wonder that these marketing-first-tech-second exchanges are failing. https://techcrunch.com/...
I don't know what anyone else thinks, but I say this is smart and will allow them to make it through these tough times. @CrolonMars #Cro #Crolonmars #TrueGoldToken #SonOfDoge #Astrodnky #Poodl #Greenstix @GreenStix_V2 https://techcrunch.com/...
@WatcherGuru We tried to post that layoffs were happening last month but the CEO was quick to call our post FUD and BS etc. In our opinion, Crypto dot com is not a trustworthy operation.
Maybe they'll fire the guy that advises them that their questionable audits are sufficient compared to releasing actual cold wallet addresses to cover the backing of assets on their chain? https://twitter.com/...
Crypto exchange https://crypto.com/ announced it was laying off 20% of its workforce. It previously laid off 2,000 employees in October 2022, accounting for about 30% to 40% of its workforce. https://crypto.com/...