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Crypto.com reportedly lays off hundreds of employees

Yahoo Finance crypto reporter David Hollerith details accounts of mass layoffs occurring at cryptocurrency exchange Crypto.com.

Video transcript

DAVE BRIGGS: A new report says Crypto.com has laid off a lot more employees than they originally said they were going to. Yahoo Finance's David Hollerith has the details. David, what are we learning?

DAVID HOLLERITH: Well, you know, we don't actually have a figure of the layoffs. But we do have reports, many anonymous reports from Glassdoor and other job apps, such as Bind, that you know, Crypto.com has sort of come back into the headlines. And this time, it's not for the Matt Damon commercials or the fact that they, you know, bought the LA Staples Center to rename it.

So what's happening here right now is that, you know, there are a number of crypto layoffs for major firms earlier around June. And these were companies like Robinhood. Coinbase laid off 1,000 employees. BlockFi, OpenSea, there's cuts across the board.

And what's been surfaced now from reports from Decrypt actually, is that the company has made more layoffs since their original filing. So what we know now is sort of that apparently last week in an internal conversation, an all-hands meeting, the company said that they had laid off additional employees.

And we don't have that number. And there are a number of anonymous accounts of how many that is. But it sounds like it's pretty unclear even to the employees about how many people have been laid off. It could be as high as 1,000. But again, we don't have confirmation from anyone from Crypto.com.

I did reach out to a spokesperson who would not confirm details of any layoffs prior to what happened in June. But we do know that they have stated that their balance sheet has been righted, and that's what they've been focusing on. And that's sort of been what a lot of these-- part of the second part of these layoffs is about is about having more cash, given the fact that crypto's been in a bear market.

But you know, if we're just looking across the board at the crypto industry, we saw its record-breaking M&A deal between Galaxy, Digital, and BitGo go up in smoke. It was terminated earlier this week. And so, you know, I think that this is just one more sign that companies are sort of bearing down for winter, for however long it turns out to be.