Crypto.com Reduces Its Workforce by 20%
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An editor at Coincrop
13 Jan 2023 | 3 min read
rypto.com is reducing its workforce by 20% in preparation for the cryptocurrency winter, becoming the latest of many major crypto firms to do so.
Crypto.com announced that, due to current economic circumstances resulting from the crypto market's decline and FTX implosion, they would be downsizing their team by approximately 20%, an unfortunate yet necessary measure for the future stability of their business.
"We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory changed rapidly with a confluence of negative economic developments, “To address this issue, Kris Marszalek - co-founder and CEO of the company wrote.
Crypto.com’s social media profiles estimate 3500-4500 employees, with the current round of layoffs potentially impacting 700-900 individuals. This follows other cuts made in mid-2022 when the crypto sphere started to slow due to Terra - a multi-billion-dollar ecosystem – and Three Arrows Capital's crypto hedge fund collapsing.
Marszalek wrote, "The reductions we made last July positioned us to weather the macroeconomic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry. It’s for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success,".
This year has been unkind to Crypto.com's CRO token, as it plummeted a staggering 96% over the course of 12 months. The number of active addresses using this unique cryptocurrency also dropped significantly; from 2,114 at the start of 2021 to only 640 currently.
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