• Crypto.com CEO Kris Marszalek has announced a 20% layoff of their global workforce due to negative economic developments.
• The layoffs come after similar announcements from Coinbase and Huobi earlier this year.
• The Cronos (CRO) token price has responded positively to the news.
Crypto.com, one of the leading cryptocurrency exchanges, has announced a 20% reduction in its global workforce due to negative economic developments. This news comes just a few days after Coinbase announced similar layoffs.
Kris Marszalek, the co-founder and CEO of Crypto.com, made the announcement today, citing poor market conditions and the events in the industry as reasons for the layoffs. According to sources, Crypto.com has around 3500-4500 employees, meaning the 20% layoffs would affect around 700-900 employees.
Crypto.com is not the only crypto-related firm to announce layoffs this year. Huobi also announced layoffs at the start of the year, and Coinbase also announced layoffs a few days ago. This news of layoffs sends mixed signals to the market, as the crypto market is currently on a recovery trajectory and investors are expecting some good news from the industry.
However, the Cronos (CRO) token price has responded positively to the news of the layoffs. This might be because investors are expecting the smaller workforce to be more efficient and productive.
In a tweet post addressing the matter, Marszalek wrote: “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.”
It remains to be seen whether the layoffs will have a positive or negative effect on the company in the long run. In the short-term, though, it looks like the announcement has been well-received by the market.