Crypto Platform Luno Sheds 35% of Workforce

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Crypto Platform Luno Sheds 35% of Workforce

<p>Luno, the digital
assets <a href="https://www.financemagnates.com/terms/e/exchange/" class="terms__main-term" id="b5da6e64-2afe-421d-9b81-16404b7d59d6" target="_blank">exchange</a> based in London, announced a massive workforce reduction
yesterday, feeling the harmful effects of the prolonged crypto winter and turbulence
in the technology industries.</p><p>Luno Cuts Massive Part
of Its Team</p><p>According
to Wednesday's statement, Luno decided to lay off 35% of its current staff,
translating to more than 300 professionals in all regions where the crypto
exchange is currently operating. The London-based company runs other offices in
Cape Town, Johannesburg, Lagos, Singapore and Sydney.</p><p>"2022
has been an incredibly tough year for the broader tech industry and, in
particular, the crypto market. Luno, unfortunately, hasn't been immune to this
turbulence, which has affected our overall growth and revenue numbers," Marcus
Swanepoel, the Co-Founder and CEO of Luno, wrote in a statement on the company's
blog.</p><p>Luno says
it anticipated the industry downturn and was adjusting its business model to
make it resilient to unfavourable factors. However, the speed of negative
changes has put considerable strain on the original plan and proved inadequate. Consequently, the company
has been forced to reduce the cost base and focus on the core business. Luno
reassures that there is no impact on the liquidity of the existing business and
the exchange's customers.</p><p>"Thanks
to those who have helped us get this far, and also to those who will continue
to drive forward our critical mission of putting the power of crypto into
everyone's hands," Swanepoel concluded.</p><p>Watch the recent FMLS22 panel on crypto market structure.</p><p>Digital Currency Group
Says Goodbye to 500 People</p><p>Cryptocurrency
exchange Luno is part of the Digital Currency Group (DCG) portfolio, which includes
CoinDesk, a cryptocurrency website, HQ Digital, an asset management company and
Genesis, a failed cryptocurrency lender. </p><p>DCG slashed
its workforce by 13% at the beginning of the year, cutting 66 full-time
positions. Another 115 jobs were slashed in two rounds of layoffs at Genesis
Global Trading. Subsequently, <a href="https://www.financemagnates.com/cryptocurrency/crypto-lender-genesis-files-for-bankruptcy-in-new-york/" target="_blank" rel="follow">the company filed for</a> <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__secondary-term" id="41b3ef0d-d805-441d-8443-121890264e94" target="_blank">bankruptcy</a> protection.</p><p>HQ Digital
ceased operations in January 2023, which could affect the position of at least
26 people, according to LinkedIn data.</p><p>In the
meantime, Coindesk is reportedly for sale, which would help DCG raise
additional funds to survive the current cryptocurrency winter, which was reported by The Wall Street
Journal on January 18. Interest in buying the portal was
confirmed by its CEO, Kevin Worth.</p><p>Luno Joins the Crypto Layoff
Wagon</p><p>The
problems of Luno and DCG as a whole are not isolated. Finance Magnates
has repeatedly reported about plans of a number of digital asset companies to
downsize over the past few weeks.</p><p>Gemini
exchange <a href="https://www.financemagnates.com/cryptocurrency/third-times-the-charm-gemini-cuts-its-workforce-once-again/" target="_blank" rel="follow">announced its third round of job cuts</a>, in which it wants to reduce its
workforce by 10%. Previously, the workforce was  shed in June and July when Gemini
laid off roughly 17% of its professionals.</p><p>Last week,
a cryptocurrency software company ConsenSys <a href="https://www.financemagnates.com/cryptocurrency/consensys-joins-crypto-layoffs-with-11-workforce-cut/" target="_blank" rel="follow">announced a similar decision</a>. It
confirmed its intention to reduce its current workforce by 11%, which translates into 100
full-time positions. Earlier, Coinbase, one of the largest cryptocurrency
exchanges by volume, <a href="https://www.financemagnates.com/cryptocurrency/binance-hires-when-coinbase-cuts-employment-amidst-crypto-winter/" target="_blank" rel="follow">shared plans to lay off 20%, or 950 people</a>.</p><p>The reason
for cost-reducing and job-cutting is usually the same: a prolonged
cryptocurrency winter, falling prices of major assets, and declining confidence
in the industry after the collapse of <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">FTX in November</a> and the failure of <a href="https://www.financemagnates.com/cryptocurrency/where-is-bitcoin-heading-following-terra-luna-turmoil/" target="_blank" rel="follow">Terra
in May</a>.</p>

This article was written by Damian Chmiel at www.financemagnates.com.

Source: Crypto Platform Luno Sheds 35% of Workforce