In June, cryptocurrency exchange Crypto.com announced Due to the widespread downturn in the crypto market, it was laying off about 260 employees, or 5 percent of its workforce. But the layoffs did not end there.
Sources inside and outside the firm tell ledge He The company has quietly laid off hundreds more employees since the initial layoffs. These new layoffs have not been publicized, and their exact number is difficult to estimate. Crypto.com is trying to limit knowledge of the extent of these departures even within the company, with CEO Chris Marszelek refusing to answer a question about the total figure at a recent staff-only town hall meeting. done.
All of this suggests that Crypto.com — one of the most visible players in the crypto market, a Super Bowl ad starring LeBron James, and its own namesake stadium, formerly LA’s Staples Center — is more financial than the publicly known. Can be tense.
“We were assured the layoffs would affect 5 per cent, only 260 employees,” said a source with close knowledge of the situation. ledge, “People at the company have recently noticed a number of employees slacking off our internal slack or missing from scheduled meetings.”
“Due to the lack of internal transparency, one can only estimate the extent of this layoff round: we have increased our workforce by ~50 percent since 2021, and hired almost all of them to drive growth It now appears that these additional ~1,300 employees are seen as slashing costs to save the business,” the source continued. ledge Fears of retaliation from company management have provided sources for this story anonymity.
The unpublished layoffs were addressed at a Crypto.com town hall meeting held on August 10, a copy of which was obtained from ledge, In a Q&A section, Marszalek was asked about the exact number of layoffs and whether management could be more transparent about the process. He replied that the layoffs are now over, but he is under no obligation to provide details of their scope.
“I want you to understand that this is a private company, and that we don’t have to follow the public American company playbook … there should be no announcements, no blog posts,” Marszalek said. “Of course, everyone’s always interested in numbers. A number makes a great headline, it’s a great thing to gossip about. [But] As co-owners of this company, you should ask yourself, ‘Is it in my best interest to have this number available?’ And I’ll leave it there.”
Another source, an unnamed company employee reported, said Marszalek’s responses meant “no one was happy,” ledge, “After losing so many teammates we needed support and strong leaders. I wanted someone to tell me it would be okay and that I was doing a good job, but instead [it felt like] I was told to shut up and go back to work. It felt insulting.”
The unannounced layoff details were first reported by decrypt Earlier this week, the publication noted that the company’s recent employee reviews on Glassdoor noted “massive layoffs out of the blue” and criticized the firm as “very volatile.”
“The company is hiding the fact that they have laid off more than 1,000 employees,” said a July 10 review. ,ledge Was unable to confirm this number.) “They have removed the company directory, so we can’t see the number down. Management is silent on the issue and everyone is scared they will have work ahead. For morale’s sake It’s not cool to see disabled accounts account for 1/3 of the invite list at your next meeting.”
The lack of clear communication about layoffs has led to confusion within the workforce, particularly around tools that can give workers information about the number of people employed by the company. In one case, employees reported sudden changes in access to BambooHR, an internal tool that some employees use as a staff directory. Crypto.com denies that they revoked access through its head of corporate affairs, Victoria Davis. The company also shut down two Slack channels that contained each employee, which effectively eliminated one information source that some employees used as an informal tally of all employees in the company. Davis said these channels were removed for security purposes.
Crypto.com did not respond to questions about the exact number of recent layoffs. However, in a statement, Davis said, “As we announced in June, we made cuts to optimize our workforce due to continued external economic constraints. Now, with a clearer outlook on the impact and forecast of the bear market.” Also, our workforce footprint will be aligned with our business priorities. We have a strong balance sheet and will continue to invest in product, engineering and brand partnerships going forward.
Cryptocurrency businesses have faced devastating economic conditions in recent months, as both prices and trading volumes have plummeted. Crypto lender BlockFi cut 20 percent of its staff in June; In the same month, crypto exchange Coinbase said it planned to lay off 18% of its workforce, or about 1,100 employees. In July, NFT marketplace OpenSea laid off 20 percent of its workforce, after Blockchain.com similarly announced it was closing offices and cutting 25 percent of its workforce (about 150 employees).