Crypto.com has become the latest digital asset firm to enact a major workforce restructuring by cutting 20% of its staff, or an estimated 800 employees.
Crypto.com, which is a major player in the cryptocurrency brokerage space, cited ongoing economic headwinds and “unforeseeable industry events”.
The company had already reduced its headcount midway through 2022 as a response to the flailing crypto markets, but those sacrifices “did not account for the recent collapse of FTX, which significantly damaged trust in the industry,” said co-founder and chief executive Kris Marszalek in a statement.
He added: “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.”
Several other cryptocurrency firms have announced restructurings in recent weeks, in a clear sign that the industry is still under significant pressure, even though bitcoin (BTC) and other digital asset prices have partially rebounded in 2023.
Coinbase, Silvergate Capital, Huobi Global and Genesis have all announced job cuts this month.
Crypto.com rose to prominence after buying the naming rights to the LA Lakers stadium, formerly called Staples Center, as well as signing up Matt Damon as a sponsor of the company.
Native token Cronos (CRO) has been one of the worst-hit altcoins in the crypto winter, having fallen by over 85% on a year-on-year basis.