Crypto.com joins Coinbase, Bitso, Buenbit and Gemini in cutting their workforce to prepare for crypto winter. Crypto.com will layoff 260 employees, or 5%, in the face of continued market declines, CEO Kris Marszalek announced on Saturday.
Marszalek said that the layoffs were a difficult and necessary decision to ensure long-term sustainable growth. Marszalek also mentioned the “market downturn” and the company’s focus on building during the 2018-19 crypto winter.
The price for Bitcoin fell by about 65% during that time, from its December 2017 record high of nearly $20,000 to below $7,000 in Feb 2018.
Marszalek stated that “We will continue to assess how to optimize our resources to position us as the strongest builders during this down cycle to become major winners during the next bull race.”
Crypto.com, which had traded $1.3 billion over the last day, was the 14th-largest cryptocurrency exchange in spot volume on Monday morning. Crypto.com has spent heavily in marketing over the past six months.
The Singapore-based crypto exchange spent $700 million to be the exclusive sponsor of the FIFA World Cup 2020. It also paid $100 million for Matt Damon to star in a Super Bowl ad and spent $700 millions to put its name on the Staples Center in Los Angeles.
However, the giddy days of Fall 2021 are gone.
Bitcoin traded at $23,500 Monday morning, a drop of 65% from its November 2021 record of $68,789.63. According to CoinMarketCap, the total market capitalization for all cryptocurrency has dropped to $983 billion , from $3 trillion in November.
Crypto.com isn’t the only large cryptocurrency company that has slashed its workforce in preparation for crypto winter.
Gemini has fired 10% its staff. Coinbase implemented a hiring ban, and then removed recently extended job opportunities. Bitso, Mexico’s largest crypto exchange, has laid off 10% of its employees in Latin America. In Argentina, Buenbit, a crypto exchange has fired 45% of its staff.
