More than 2,000 employees have either been fired or resigned from Singapore-based crypto exchange Crypto.com since the firm began a series of major cutbacks in the wake of the market’s drastic downturn earlier this year.
As reported by AdAge, the company slashed its pre-summer workforce by up to 40% between June and August, and while there are no concrete figures to suggest exactly how many were laid off, former and current employees told AdAge that it was “the vast majority.”
It had previously been reported that Crypto.com fired 1,000 employees, including marketing personnel and an in-house creative team hired just months earlier.
A Crypto.com spokesperson told AdAge: “As disclosed in June, Crypto.com underwent a restructuring process that concluded in July to strengthen our position amidst the backdrop of a bear market climate driven by macroeconomic conditions affecting nearly every industry,” (our emphasis).
“As part of that restructuring, we made the difficult decision to conduct targeted job reductions, 60% of those roles came from non-corporate, back office and support services tied to trade volumes.”
Crypto.com prioritized headlines over the bottom line
In addition to slashing its workforce, Crypto.com has also been forced to dramatically scale back its high-profile marketing efforts.
Back in October 2021, the firm made a splash with a glossy spot featuring Hollywood A-lister Matt Damon telling viewers to “embrace the moment” and “commit” to crypto.
This was soon followed by a slew of mega-bucks deals, including sponsorships with the NBA, Formula One, and a $700 million sponsorship deal with LA’s former Staples Center.
However, less than a year later, things look very different. The company has, this month, backed out of a $495 million sponsorship deal with the UEFA Champions League, and by the end of the year will have brought to an end its partnership with esports league Twitch Rivals.
According to AdAge, Crypto.com’s current issues can be traced back to its desire for chasing big headlines rather than focusing on the more important business matters.
One former employee told the outlet, “They were just writing checks they could only cash when things were good.