Singapore-based to cut global workforce by 20% previously made layoffs in June last year, cutting 260 staff or about 5 per cent of its corporate workforce. SCREENGRAB: CRYPTO.COM

BENGALURU – Singapore-based is reducing its global workforce by about 20 per cent as cryptocurrency exchanges face industrywide challenges brought on by the collapse of FTX last year.

Its announcement comes amid concerns about reserves and solvency across the sector, and only a few days after rival exchanges Coinbase Global and Huobi announced plans to lay off about 20 per cent of their staff. A source said last week that Genesis, too, had cut jobs, equating to 30 per cent of its workforce.

The layoffs at would be its second in about six months, after it cut 260 jobs in July last year to weather the macro economic downturn amid rising interest rates.

The recent FTX collapse “significantly damaged trust in the industry”, chief executive officer Kris Marszalek said in a statement.

“It is for this reason, as we continue to focus on prudent financial management, that we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success.”

This was despite the crypto exchange growing to more than 70 million users worldwide.

Crypto businesses collectively have shed more than 1,600 jobs in the first two weeks of 2023, shaken by the rout in token prices.

The collapse of Sam Bankman-Fried’s FTX was the biggest in a string of big crypto-related failures in 2022. It sparked a cryptocurrency rout and has left an estimated one million creditors facing losses of billions of dollars.

“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,” Mr Marszalek said. REUTERS, BLOOMBERG

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