Crypto.com announced today that it will lay off 20 percent of its staff. This comes just days after Coinbase also announced it would lay off some of its staff.

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In a letter sent to employees and shared on social media, Kris Marszalek, co-founder, and CEO of Crypto.com, said several factors, including ongoing economic headwinds and industry contingencies, played a role in the decision to lay off some of the staff.

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

The CEO said that while the company's workforce cuts last July enabled the company to weather the economic downturn, Crypto.com was not responsible for FTX's collapse. He wrote:

“For this reason, while continuing to focus on prudent financial management, we have made the difficult but necessary decision to make additional reductions to position the company for long-term success”

Crypto.com joins other major crypto companies that have previously had to announce layoffs. Some of these include Coinbase, Huobi, and SuperRare Labs and the collapse of Celsius, Voyager Digital, and FTX.

Crypto.com CEO positive about the future

Despite the grim news, Marszalek remained optimistic about the company's future. He said he and senior management remain confident in the company's vision and mission.

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“We have an important year ahead of us as we continue to help restore confidence in our industry and further mainstream our services in markets around the world,” he said. “I am confident in our ability to build and lead the market. I am grateful to be working with all of you on the journey ahead.”