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Crypto.com Accused of ‘Hiding’ Hundreds of Staff Lay-Offs

The ongoing slump across the cryptocurrency market has affected many crypto firms struggling to sustain liquidity as trading volumes decline. One of the firms that the bear market has dealt a blow to is Crypto.com. It announced plans to lay off 5% of its workforce in June. However, recent reports showed that the company has continued to lay off staff.

Crypto.com continues laying off staff amid the bear market

A report by The Verge said that sources within the crypto exchange firm had revealed that layoffs had continued in recent months. The company has laid off hundreds of employees since the initial 5% layoff.

The exchange is yet to announce these new layoffs publicly, and the number of employees who have left remains unclear. The exchange seems unwilling to provide any details about these new layoffs, with the exchange’s CEO, Kris Marszalek, declining to provide the actual figures of the company’s current employees.

The company’s reviews on Glassdoor from employees complaining that layoffs were happening out of the blue and that the company was unstable also confirm the matter.

One of the Glassdoor reviews said that the company was hiding that it had laid off over 1000 employees. The review posted on July 10 said that Crypto.com had removed its company directory to make it impossible to monitor the declining numbers. The employee also said the situation was demoralizing because everyone was terrified about losing their jobs.

Crypto.com hiding details of laid-off employees

Crypto.com has denied reports that it has changed access to the BambooHR tool used as a staff directory. The exchange has also shut down two Slack channels containing all employees. This way, employees cannot tally all the workers still working in the company. The head of Crypto.com’s corporate affairs, Victoria Davis, said that the move was made for security reasons.

Crypto.com has continued to steer clear of providing details about the exact number of employees laid off. In a Crypto.com town hall meeting on August 10, Marszalek said that the company had completed all layoffs. Still, it was not obligated to reveal employee statistics because it was not a public company.

Davis has also said that the company was still reducing its workforce as announced in June. The exchange now had a clear perspective of the impact of the bear market, and its workforce would be aligned to fulfill the business objectives.

Crypto.com is not alone in laying off staff amid the ongoing bear market. In June, BlockFi announced it would lay off 20% of its employees, while Coinbase, one of the top exchanges supporting large cap and low cap cryptos, laid off 18%. Last month, OpenSea, the largest NFT marketplace, laid off 20% of its employees.

Before the bear market, Crypto.com was a heavy spender on advertisements. The exchange had a Super Bowl ad featuring NBA star LeBron James. It also purchased naming rights to the LA Staples Center.