Crypto Layoffs on a Spree: Crypto.com Cuts 5% of Employees

The crypto winter continues to bite, forcing difficult decisions across the industry. Crypto companies are on a layoff spree, and Crypto.com, a prominent crypto exchange, is the latest to announce significant staff reductions. CEO Kris Marszalek announced on Saturday that Crypto.com will lay off 260 people, or 5% of its corporate workforce, as the markets continue to head into a downturn.

This announcement follows a trend of widespread layoffs across the cryptocurrency sector. Crypto exchange Crypto.com and lending platform BlockFi plan to cut a total of more than 400 jobs, whereas Coinbase announced to layoff as many as 1,100 employees. Layoff announcements at crypto-focused firms are piling up this week in the wake of a crash that has seen the value of major cryptocurrencies tumble significantly over the past months.

Early Friday morning, retail-focused crypto exchange Crypto.com, the third-largest company in the space by headcount, announced it would be laying off 20% of its staff. However, conflicting information surfaced, with the actual number settling at 5% later that week. The company cited difficult market conditions as the primary driver for the cutbacks.

While these layoffs are undoubtedly a setback, the story isn't entirely bleak. Interestingly, despite the setbacks, Crypto.com is now on a hiring spree, with plans to add 1400 new staffers to its headcount. Since November, the company has already hired 700. This suggests a strategic shift and a focus on specific areas within the company.

The crypto market remains volatile, and the future remains uncertain. These layoffs at Crypto.com, and other exchanges, highlight the challenges facing the industry as it navigates the current economic climate. Whether Crypto.com's hiring spree will offset the recent cuts remains to be seen, but it indicates a long-term commitment to growth despite the present difficulties.