LunoGlobal, a major cryptocurrency exchange, is cutting off approx. 35% of its workforce due to ongoing challenges the crypto market faces. In a recent statement, the head of the company cited the “incredibly tough year” as the reason for these lay-offs. The downsize will allegedly affect employees across various departments in the company. Luno has around 600 employees, meaning that this round of lay-offs will decrease their team size to 390 employees. This strategic move comes as the crypto market is experiencing high volatility. Despite the market’s recent rally, the overall performance is still negative. For your information, several crypto companies such as ByBit have announced significant cuts in their workforce throughout 2022 and 2023. Not only that, but even other major international companies such as Meta, Amazon, and Twitter have also cut down the number of their employees by a significant amount.
The company is owned by Digital Currency Group (DCG), a company with Foundry, Genesis, Grayscale Investments, Luno, and CoinDesk as its subsidiaries.
Major Layoffs in the Cryptocurrency Industry
According to reports, employers in the cryptocurrency industry have fired over 29,000 individuals throughout this bear market. This is believed to be a ripple effect of the market performance of Bitcoin, Ethereum, and other altcoins. These cuts came as the crypto market continues to face volatility and negative market performance throughout 2022 and early 2023. Of course, when the whole industry is underperforming, companies working in the industry also struggle with traffic and money inflow. So, this led to a significant decline in the value and profit of many companies in the industry. With less profitability, companies had to take strict measures to survive the market, leading to significant layoffs.
Ultimately, while the cryptocurrency market has always been volatile, such recent job cuts are a reminder that real-world consequences can result from market fluctuations. Normally, it is uncertain if the market will recover anytime soon, despite Bitcoin’s recent rally to $23,000. For now, the market is going through a very difficult time. Nevertheless, key industry players are still standing strong and working towards keeping the market healthy while continuously promoting the industry, blockchain, and Web3.