Cronos (CRO) price up as Crypto.com announces layoffs

The price of Cronos (CRO) token has maintained its bullish trajectory even as Crypto.com announces 20% layoffs.

In the company’s announcement, the CEO and co-founder of Crypto.com, Kris Marszalek, the company “made the difficult decision to reduce our global workforce by approximately 20%.” In a post on Twitter, the CEO congratulated those impacted saying:

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“All impacted personnel have already been notified. These reductions were in no way related to performance, and we extend our deepest gratitude for all their contributions to Crypto.com.”

Economic headwinds and unforeseeable industry events

Marszalek cited “ongoing economic headwinds and unforeseeable industry events,” as the reason for the company to take the drastic measure to reduce its workforce. The move however comes even as the crypto exchange is reported to have grown to more than 70 million users worldwide.

The CEO said:

“We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory changed rapidly with a confluence of negative economic developments.”

In June last year, the crypto exchange announced a smaller staff layoff of 5% that resulted in 260 employees being sent packing. According to the CEO, these layoffs enabled the exchange to weather the crypto winter although it did not mitigate the effects of the collapse of the FTX exchange. According to him, the collapse of what was the second-largest exchange “significantly damaged trust in the industry.”

Crypto.com layoffs come days after another crypto exchange, Coinbase, announced that it was reducing its operational costs by 25% by laying off about 20% of its workforce. Other exchanges like Huobi, Swyftx, and Kraken have also announced layoffs in the past month.