Singapore-based cryptocurrency exchange Crypto.com plans to cut 20% of its current workforce.
In a statement released today by the crypto exchange, Kris Marszalek, CEO of Crypto.com, said that the decision to layoff was taken to prudently conduct financial management activities and reposition the company for long-term success.
Crypto.com laid off 260 employees in July last year. The stock market, which laid off 5% of the total workforce at that time, announced a higher rate of layoffs this time.
Thus, the exchange followed other majors in the industry, Coinbase, Huobi, and Blockchain.com, which announced their layoff plans this week. While Coinbase recently said that it will lay off 950 people, Huobi confirmed that it will reduce its total workforce by 20%. Blockchain.com announced that it will lay off approximately 110 employees.
Crypto exchanges have also rapidly increased their staff numbers as a result of the rapid growth of the bull season. Finally, after the market conditions became more difficult after the collapse of FTX, the stock markets, which had to deal with economic problems, started to implement dismissal policies as a result of these negative conditions.
Binance follows the opposite policy
Binance, the largest cryptocurrency exchange in the market, is revealing its growth plans in 2023 in response to the layoffs and attempts by its competitors to terminate its operations in various regions. Changpeng Zhao, CEO of Binance, said in his latest statements that the company is considering increasing the number of staff by 15-30% this year.
According to these statements, Binance aims to follow the opposite policy despite the negative conditions in the market, while its competitors implement a policy of rapid shrinkage.