Crypto exchange platform Crypto.com has moved to lay off about 20% of its global workforce.
Crypto.com CEO Kris Marszalek said in a Jan. 13 post that the exchange made the difficult decision to slash its workforce to weather the challenges of the current bear market.
Crypto.com reportedly grew its workforce to roughly 4,000 in 2022. However, the effect of the recent FTX fallout and market contagions has forced the company to conduct its second round of layoffs.
“The reductions we have last July positioned us to weather the macroeconomic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry,” Kris said.
Consequently, Crypto.com has notified all affected personnel and will proceed to deliver their due allowances.
Kris added that the exchange would work with relevant stakeholders to restore trust in the crypto industry as it seeks to further its global expansion effort.
From spending to firing spree
The growing pains of the bear market have forced Crypto.com to shift from being a heavy spender to firing its workforce.
About seven months ago, Crypto.com slashed its workforce by 5%. As a result, about 260 employees lost their roles.
However, speculations in the crypto community suggest that the financial issues rocking the exchange may be due to its lavish spending on marketing.
The famous “Fortune Favors the Brave” marketing campaign cost the company about $100 million. In addition, a 30-second-long Super Bowl commercial starring LeBron James cost roughly $7 million.
Furthermore, Crypto.com spent approximately $700 million to acquire the naming rights of the Staples Center and another $400 million to complete six sports deals.
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