LONDON (ShareCast) - (Sharecast News) - Crypto.com is axing a fifth of its workforce, the cryptocurrency platform said on Friday, after the collapse of FTX continued to send shockwaves across the industry.
In a message to all employees, co-founder and chief executive Kris Marszalek said the Singapore-based business had taken the "difficult decision" to reduce the global headcount by around 20%.

Crypto.com last announced a round of job cuts in July, in response to worsening macroeconomic conditions. But Marszalek said they "did not account for the recent collapse of FTX, which significantly damaged trust in the industry".

"It is 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."

Crypto.com noted that it had more than 70m users worldwide and a "strong" balance sheet. According to its LinkedIn profile, the firm employs more than 4,000 people.

The fallout from the collapse of crypto exchange FTX at the end of last year, and the subsequent arrest of founder Sam Bankman-Fried, has hit the sector hard. Crypto.com is the second company to announce job cuts this week, after Coinbase said on Tuesday it was laying off around 950 people.

Chief executive Brian Armstrong warned at the time: "We saw the fallout from unscrupulous actors in the industry and there could still be further contagion."

So far this year, bitcoin has rallied 14% to $18,902. But it remains 56% down on January 2022 and well below highs of more than $64,000 achieved in 2021.

Marszalek tweeted: "I remain as confident as ever in our business and in the future of crypto, but I recognize we have a lot of work to do to help restore trust in the industry. It will take time, but we will get it done."

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