BlockFi, Crypto.com lay off hundreds as digital coins take a hit by global economic conditions

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A shift in macro-economic conditions kicks off layoffs in crypto trading companies such as crypto.com and BlockFi, who have laid off hundreds of employees recently owing to a dramatic fall of digital coins.

BlockFi CEO Zac Prince said that the company is reducing headcount by roughly 20 per cent and the reduction impacts every team at the company. "This decision was driven by market conditions that have had a negative impact on our growth rate and a rigorous review of our strategic priorities," he said in a statement late on Monday.

The 20 per cent workforce reduction will result in laying off 170 to 200 people from its 850-strong staff. Since Q1 2022, the macroeconomic environment has shifted dramatically, sparking a dramatic pull back in equity and crypto markets.

"As a result, our number one goal has been to achieve profitability so that we can own our destiny as we navigate what many expect to be an extended global recession," said Prince.

Earlier, crypto.com announced it's laying off around 260 employees, or nearly 5 per cent of its workforce. Its CEO Kris Marszalek said in a tweet thread that the company's approach is to stay focused on executing against its roadmap and optimising for profitability.

"That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term by making targeted reductions of approximately 260 or 5% of our corporate workforce," he announced.

The layoffs come as the crypto market is facing a turbulent time, with the value of Bitcoin and Ethereum falling consistently.

Coinbase has announced to slow hiring and reportedly rescinded over 300 job offers.

"The markets will turn, and when they do, you can be sure that we will be ready to drive and capture the next wave of growth for cryptocurrency adoption," said crypto.com CEO Marszalek.

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