London-based cryptocurrency exchange Luno, part of the Digital Currency Group (DCG), will cut 35% of its staff.
The cuts were announced to employees by CEO Marcus Swanepoel. He referred to a difficult year for the crypto industry and the economy as a whole, saying that the company’s revenue figures have fallen sharply, so Luno is forced to take extreme measures.
The total number of employees of the crypto exchange is about 960 people, that is, about 330 employees fell under the cuts. This mainly concerns the marketing department, which, as the management assures, will minimally affect the work of the crypto exchange. Now the company intends to limit the financing of its projects and “focus on long-term profitability.”
DCG is one of the holdings most affected by the FTX default in November. Last week, the holding’s lending arm, Genesis, filed for bankruptcy following the collapse of Three Arrows Capital.
“We expected a downturn in the cryptocurrency market and planned to adjust the business model and funding, but the scale and speed with which everything happened took us by surprise,” Luno CEO admits.
In fact, it turned out, says Markus Swanepoel, that in addition to all business maneuvers, it is necessary to cut costs, a significant part of which is wages.
Earlier, The Wall Street Journal reported that DCG, due to its own liquidity crisis, is considering selling the popular cryptocurrency publication CoinDesk.
Source: Bits
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