Crypto.com is the latest victim of the recession, having announced the layoff of 20% of its workforce.
This isn’t crypto’s first bad market, but the fall of FTX has exacerbated its consequences dramatically. Crypto is facing not only an economic collapse, but also a general lack of faith in the business.
Let’s go over what’s going on with Crypto.com, why FTX is participating in the mass layoffs, and how the crypto sector will look in 2023.
In a blog post on January 13, Crypto.com announced a 20% employee reduction. Co-founder and CEO Kris Marszalek claimed the cull was “in no way tied to performance” and the company has “had to negotiate ongoing economic headwinds and unanticipated industry changes”.
The move comes after the company lay off 5% of its workforce in July 2022. Marszalek remains cheerful, claiming Crypto.com leaders “remain as confident as ever in our purpose and vision”.
The layoffs contrast sharply with Crypto.com’s fortunes just two years ago. In 2021, the exchange purchased the naming rights to the legendary Staples Center, which is now known as the Crypto.com Arena.
“Fortune favors the brave,” LeBron James stated in last year’s Super Bowl commercial. The amount spent on the advertisement was not disclosed by the firm. Soon after, the crypto market began to fall.