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Luno will lay off 330 people out of a workforce of around 960.
The extended crypto winter that was taken a blow on all and sundry has now impacted dcg-owned crypto luno exchange as it plans to lay off some employees. A lot of crypto companies have laid off their workers in the middle of the bear market. The likes of Coinbase (NASDAQ: COIN), Galaxy Digital, and many more have reduced their headcounts as they navigated through the trying times. In addition to redundancies, a number of crypto companies run by ftx have also filed for bankruptcy.
Luno is firing approximately 330 workers.
Luno announced that she was going to lay off 35% of her employees around the world. Marcus Swanepoel, the company's CEO, shared the discouraging information in a live Open House on Wednesday. For the development, luno will get rid of 330 out of approximately 960 employees counted on linkedin. Citing an internal memo by the CEO, CNBC wrote:
“2022 has been an incredibly tough year for the broader tech industry and in particular the crypto market. Unfortunately, Luno was not immune to this turbulence that hurt our overall growth and revenue."
A Luno spokesperson pointed out that the layoff of employees will have "little or no impact on key operations and compliance teams." However, the workers in the marketing teams would be the hardest hit. They're also going to reduce their operations in the United States and Australia. Luno is active in Europe, Africa and South-East Asia. The company belongs to the group of digital currency (dcg) crypto conglomerate, one of the companies implicated in the ftx crash. Just as Luno starts to feel the warmth, another DCG affiliate recently filed filing for bankruptcy.
The tragic collapse of the terrausd in May also contributed to the persistence of the crypto winter. At the same time, the federal government's higher interest rates also contributed to the present market situation. The crypto marketplace has lost over $2 trillion in value since the crypto rally summit in November 2021.
"Even if we were expecting a slowdown and proactively planned ahead a business and financing model that can withstand some of these factors, the magnitude and velocity of it all, and everything in the process, challenged our initial plan. In practical terms, this means not only streamlining our strategy to focus on our fundamental strengths, we must also significantly reduce our base costs, including the number of employees in all of our markets, so that we are ready to succeed in the future."
Despite the declines across multiple crypto assets, Bitcoin hit $23,000 for the first time since August. At the time, the Sentiment market intelligence platform revealed that Bitcoin whales had amassed approximately 64,638 BTCs valued at nearly $1.46 billion in two weeks.
