Luno to cut 35% of workforce

The Digital Currency Group exchange is reducing its workforce citing difficulties in both the tech and crypto sectors.

Another prominent exchange, Luno, announced on Wednesday that it would make 35% of its global workforce redundant.

Reducing headcount in the crypto sector has been ongoing for several months now, with Coinbase, Bybit, Gemini, FTX, and numerous others letting people go.

In fact, the only company to buck this trend is Binance, which has been cautiously expanding its own employee count, with a particular emphasis on compliance.

Luno CEO Marcus Swanepoel explained that 2022 has been a particularly hard year for the Digital Currency Group (DGC)-owned company, and the crypto industry as a whole.

“Luno unfortunately hasn’t been immune to this turbulence, which has affected our overall growth and revenue numbers”, he said.

At the time of writing, the company had around 960 employees, meaning that more than 300 employees will be affected.

The executive said the layoffs are expected to have minimal impact on day-to-day operations at Luno.

DGC has been dealing with the meltdown of not just the crypto markets, but also one of the most prominent companies in the sector, FTX.

DGC’s own exposure to FTX has caused it much pain because of Genesis’ most recent financial trouble, which saw the crypto lending unit file for bankruptcy protection under Chapter 11.

Gemini, a company that Genesis set up a lending product with, is said to be seeking $900m worth of customer funds from Genesis.

The to-and-fro between the two companies has spilt over on Twitter where the companies’ exchanged accusations of who was at fault.

Yet, the current crypto meltdown can be traced back to even earlier, when TerraUSD’s value was lost, triggering a chain reaction that caught Voyager Digital, BlockFi, Genesis, and FTX unprepared.

The Federal Bureau of Investigation and other institutions in the US are currently trying to establish how much of the crypto troubles can be linked to former FTX boss Sam Bankman-Fried, who may have misused up to $8bn in consumer funds to finance a third-party company, Alameda Research.

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Written by Alex


Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.

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