Report: Crypto.com Has Cut 30%-40% of Staff

A tough market has led cryptocurrency exchange Crypto.com to make significant job cuts while also ending some brand partnerships.

That’s according to a Thursday (Oct. 6) report by AdAge, which cited multiple sources. The company has reduced its headcount by north of 2,000 — the equivalent of 30% to 40% of its staff. That number is much higher than earlier reports, which placed the number at about 1,000.

The company had previously announced it was cutting 260 jobs, or 5% of its staff, according to the report.

Meanwhile, several of Crypto.com’s marketing plans and brand deals have faltered. As PYMNTS reported last month, the company recently backed out of a five-year sponsorship deal worth $495 million with the UEFA Champions League, which is the European elite soccer league.

Read more: Crypto.com Scraps $495M European Soccer League Sponsorship

The arrangement had apparently been agreed to in principle and would have seen Crypto.com take over as sponsor from Russia’s state-owned energy company Gazprom. UEFA canceled the Gazprom contract following the Russian invasion of Ukraine earlier this year.

AdAge reported the company has also ended its sponsorship with Los Angeles-based soccer team Angel F.C., while also walking back its sponsorship deal with the eSports league of streaming service Twitch.

See also: Super Bowl Curse Comes for Crypto as Layoffs Mount

While the company is still planning to be the official sponsor of the 2022 FIFA World Cup, it has cut back on some of its hospitality packages or required benefits it must provide to help facilitate the tournament’s operations, the report stated.

A spokesperson declined to comment to AdAge about the specific number of jobs cut but said the company underwent restructuring in July amid a bear market. Sixty percent of the jobs eliminated were “non-corporate, back office and support services tied to trade volumes.”

This year has seen several cryptocurrency companies lay off workers amid a market downturn.

Read more: Crypto Layoffs Hit Compliance Departments

Coinbase CEO Brian Armstrong announced in June the company was eliminating 1,100 jobs — or around 18% of its workforce — as the Nasdaq-listed firm’s stock price plummeted with the price of bitcoin and other cryptocurrencies.

See more: Coinbase Cuts Staff by 18% Ahead of ‘Crypto Winter’

Crypto exchange Gemini cut 10% of its staff around the same time.

Read more: Gemini to Cut 10% of Its Staff

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