By Michael Scott
The London-based crypto exchange Luno has announced to lay off 35% of its staff, citing the current market turbulence. The statement issued by the crypto exchange on Wednesday, January 25, revealed that 330 staff would be leaving office as Luno attempts to navigate the current market condition.
Reasons for Luno Layoffs
An internal report shared by crypto exchange chief executive Marcus Swanepoel confirms axing 35% of its workforce. Swanepoel lamented that the last sluggish market made the previous trading year tougher than 2021. At the moment, Luno is pursuing to find the immune to the ongoing market turmoil.
Swanepoel regretted that most of the axed employees formed the core team of Luno, which would have pushed the company to greater heights. However, the current market slowdown made axing the 330 employees inevitable as the firm struggled to navigate the turbulence.
Will Luno Find Immunity in the Crypto Market Turbulence?
Luno crypto exchange is owned by the embattled Digital Currency Group (DCG). Luno has expanded its operation in Africa, Europe, and some parts of the Asian market. In addition, Luno management confessed to pursuing new markets in Australia and the US.
Besides the widespread geographical presence, Luno needs help to restore growth and increase income amid the sluggish crypto market.
According to Swanepoel’s report, the layoff plans will only affect the marketing department while the operation and compliance department remains untouched. He argued that the company’s decision aimed to maintain Luno’s position in the global market as the company pursued plans to cope with industry changes.
Swanepoel reiterated that the firm would prioritize leveraging the existing strengths. Nonetheless, the firm had to reduce its spending by reducing the workforce to remain afloat. The Luno chief dismissed speculations on the current financial constraints affecting its going concern. Instead, Swanepoel assured the key stakeholders that the customers’ assets were safe.
Massive Layoffs in the Crypto Space
Last year’s economic pressure and the ongoing crypto winter have contributed to fierce digital space competition. Also, the collapse of the Bahamas crypto exchange FTX plunged other high-profile crypto exchanges into liquidity crises.
Recently the troubled Genesis filed for bankruptcy protection exposing the list of creditors. Luno’s parent company DCG is among the creditors in the Genesis saga.
Massive layoffs are inevitable as the crypto operators battle multiple constraints, including volatile markets, unbearable interest rates, and an appetite for stringent regulations.
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