Cryptocurrency exchange Crypto.com has made sizable efforts to downsize its workforce and brand partnerships during the bear market, reported Ad Age on Thursday.
The company has cut headcount by more than 2,000 – or 30%-40% of staff – since layoffs began last summer, according to the report, which cites multiple sources. Previous reporting had put the number closer to 1,000, and CEO Kris Marszalek in June said there had been job cuts of 260, or 5% of the workforce.
Additionally, Crypto.com’s ambitious marketing schemes and brand deals have suffered. In addition to walking back its $495 million UEFA Champion League sponsorship last month, the company has also retracted its sponsorship with Los Angeles-based soccer team Angel F.C., said Ad Age. It has also pulled back on its sponsorship deal with the esports league of streaming service Twitch.
Although the company is still planning to be the official sponsor of the 2022 FIFA World Cup, it has whittled down some of its hospitality packages, or required benefits it must provide to help facilitate the tournament’s operations, according to the report.
Though declining to address specific numbers on how many have been laid off, a Crypto.com spokesperson told Ad Age: “As disclosed in June, Crypto.com underwent a restructuring process that concluded in July to strengthen our position amidst the backdrop of a bear market climate … As part of that restructuring, we made the difficult decision to conduct targeted job reductions, 60% of those roles came from non-corporate, back office and support services tied to trade volumes.”