Investing.com – Crypto.com announced on Friday that it will cut about 20% of its workforce as cryptocurrency exchanges struggle following the collapse of FTX last year.
The Singapore-based company’s announcement comes amid concerns over reserves and solvency across the industry, and just days after rival exchanges Coinbase Global Inc (NASDAQ:) and Huobi have announced plans to lay off approximately 20% of their staff.
The layoffs at Crypto.com would be the second in about six months, after it cut its workforce in July last year to cope with the macroeconomic slowdown amid rising interest rates.
FTX’s recent collapse has “significantly damaged confidence in the industry,” Kris Marszalek, chief executive of Crypto.com, said in a statement.
“It is for this reason, as we continue to focus on prudent financial management, that we have made the difficult but necessary decision to make further reductions in order to position the business for long-term success.”
Sam Bankman-Fried’s FTX collapse was the largest in a series of big cryptocurrency-related bankruptcies in 2022. It sparked a cryptocurrency rout and left around 1 million creditors facing multi-billion dollar losses.