Second Round Of Layoffs At Crypto.com Worse Than June Cuts: Sources

Second Round Of Layoffs At Crypto.com Worse Than June Cuts: Sources

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In June, Singapore-based crypto exchange Crypto.com laid off 260 employeesor 5% of its workforce, citing the crypto bear market. Remaining employees would have been told at the time that these cuts were the end of the bloodshed.

“They lied,” source inside Crypto.com now tells Decrypt. Last Friday, during a quarterly “all hands” call, the company informed employees of additional layoffs.

The source, a Crypto.com employee in a management role whose identity was confirmed by Decryptspoke on condition of anonymity. Decrypt confirmed the layoffs with two other sources of current employees.

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The final round of cuts has not been publicly announced. During the call, “management expressed that they have no intention of going public,” the source said. occur.”

Due to the company’s internal privacy practices, the employee could not provide the number of layoffs in the previous month or the percentage of remaining employees affected. But the source says the size of this series of cuts “is much larger than the first.”

According to the source, a number of factors are at play as the cuts continue. The June layoffs targeted “elastic” staff like customer service and growth roles — employees who were less in demand as the number of customers and trading volume on the platform declined. This trick, the source said, touched people”critical products like exchange, app and wallet.

The move is very similar to what happened at rival crypto exchange Gemini, which also adopted a second round of layoffs in mid-July, after making headlines announcing cuts June 2.

A Crypto.com spokesperson did not confirm details or the number of layoffs beyond those announced in June, but provided a brief statement.

“We announced reductions in June, and since then have optimized our workforce to align with current external economic headwinds,” the spokesperson said. “We have a strong balance sheet and will continue to invest in product, engineering and brand partnerships moving forward.”

In announcing its June cuts, Crypto.com described its staff as “needs-based” and said hiring would resume when conditions improve. Just yesterday, Crypto.com announced that it will be the first cryptocurrency exchange operating under Canada’s new regulatory regime.

Even so, cost reduction is becoming a top priority at Crypto.com.

“The business is cutting to the bare minimum to survive the likely long bear market – internal initiatives are about trying to save every penny,” the source said.

Prior to the cuts, around 45% of all Crypto.com employees were hired between 2021 and 2022, the source said. “The massive hiring was intended for growth, and the majority of them – around 1,300 employees – are no longer needed in the current environment.”

Decrypt reviewed a dozen layoff messages from former Crypto.com employees posted publicly on LinkedIn over the past week. Many used the same framing, citing “current market conditions” and describing their layoffs as part of the June cuts.

Now, similar posts appear on the Glassdoor employer review site and appear to be more recent.

The company is hiding the fact that it has laid off more than 1,000 employees despite officially announcing that it is laying off 260.” wrote a current self-proclaimed Crypto.com employee on July 10. “They’ve taken down the company directory so we can’t see the numbers go down. It’s not good for morale to see that 1/3 of the guest list at your next meeting are deactivated accounts.”

Editor’s Note: This article has been updated to attribute Crypto.com’s comment to a company spokesperson.

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