In a company update, Crypto.com announced that it has decided to cut its workforce by 20%, joining a litany of Fintechs that have been compelled to reduce costs due to the difficult economy. The company did not provide an exact number of job losses.
Kris Marszalek, co-founder and CEO of Crypto.com, said that while the company is performing well that are having to navigate “ongoing economic headwinds.” He also pointed a finger of blame at FTX and its failure – an event that has impacted the entire digital asset industry driving fear and concern of contagion.
“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. The reductions we made last July positioned us to weather the macro economic 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.”
Crypto.com is a multi-faceted digital asset provider that offers crypto trading, NFTs, a yield program, along with other services such as credit cards, payments, and more. The company, which operates globally in 90 different countries, reports 70 million users.