In June, cryptocurrency exchange Crypto.com announced it would lay off about 260 employees, or 5% of its workforce, due to a widespread recession in the crypto market. But the layoffs didn’t stop there.
Internal and external sources tell The Verge that the company has quietly laid off hundreds more employees since the initial layoffs.
These new layoffs have not been made public and it is difficult to estimate an exact number. Crypto.com has attempted to limit knowledge about the scale of these turnovers, even within the company, with CEO Kris Marszalek answering questions about the total at his recent employees-only Town Hall meeting. refused to do so.
All of this from Crypto.com — a Super Bowl ad featuring LeBron James, one of the most watched players in the cryptocurrency market, and the self-titled stadium, the former Staples Center in LA — may be under greater financial pressure than is publicly known. “I am relieved that layoffs will affect his 5% of the workforce, only 260 of them,” a source familiar with the situation told The Verge. “People at the company have recently noticed a number of employees disappearing from internal or scheduled meetings.”
“The scale of this layoff is due to a lack of internal transparency.” can only estimate: We have increased our headcount by ~ 50% after 2021, almost all hired to drive growth, now about 1,300 additional Employees seem to be seen as a cost that needs to be cut to save the business,” the source continued.
The Verge has granted anonymity to the sources for this article for fear of retaliation from company management. The undisclosed layoffs were filed at the Crypto.com town hall meeting on August 10, and The Verge received a copy. During the Q&A section, Marzarek was asked about the exact number of layoffs and whether management could make this process more transparent.
He replied that he was not obliged to state “Please understand that this is a privately held company and we are not required to follow the strategy of a US public company. We are not required to make any announcements or blog posts,” Marzarek said. “Of course, everyone is always interested in numbers.
Numbers make great headlines and are great for gossiping. Is it in my best interest?” “One was happy,” another source, an unnamed employee at the company, told The Verge. “After losing so many teammates, we needed support and a strong leader. I wanted you to tell me you were doing a good job, but I was told to shut up and get back to work. Details of the unannounced layoff were first reported by Decrypt earlier this week.