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Cryptocurrency exchange Luno has become the latest company in the industry to undertake cost-cutting measures amid the current crypto winter, with the London-based firm reducing its global headcount by 35%.
In an internal memo shared with employees on Wednesday, Luno CEO Marcus Swanepoel said that it has been an "incredibly tough year" for the crypto markets which has affected Luno's "overall growth and revenue numbers".
“While we anticipated a downturn and proactively planned ahead with a business and funding model that can be resilient to some of these factors, the sheer scale and speed of all of this happening, and all at the same time, has put significant strain on our original plan,” Swanepoel said.
“What this means in practice is that in addition to streamlining our strategy to focus on our core strengths, we need to also substantially decrease our cost base - which includes employee headcount in all of our markets - in order for us to be set up for success going forward," he added
Founded in 2013, Luno was acquired by the DCG (Digital Currency Group) crypto conglomerate in 2020, with the company operating across Africa, Asia, and Australia.
Read more: Genesis Global Capital's Fall From Grace: Bankruptcy Filing & Billions in Liabilities
According to Luno's LinkedIn, it has a current headcount of approximately 960, which means that more than 330 jobs will be impacted.
Contagion fear spreads
While cryptocurrencies have experienced a much welcomed mini rally in recent days, an undercurrent of unease is stalking the crypto industry as a result of Genesis' bankruptcy.
Last week, Genesis Global Capital, another company under the DCG umbrella, filed for US bankruptcy. Genesis listed over 100,000 creditors, with aggregate liabilities ranging from US$1.2 billion to US$11 billion, according to court documents. The company halted withdrawals in November, citing heavy exposure to 3AC and FTX.
According to a report by Cointelegraph, more than 500 employees working in the DCG group have been laid off so far, following the collapse of some of crypto's biggest players in 2022. Rumours of a potential insolvency also continue to swirl around Grayscale - the world's largest digital asset manager owned by DCG.
