Luno, the crypto exchange subsidiary of Digital Currency Group (DCG), announced that it plans to lay off 330 of its 960 global workers.
Luno cites tighter market conditions compared to last year
Luno’s CEO, Markus Swanepoel, informed his employees in a live stream of plans for massive redundancies in the coming days. Company gave a statement to CNBC And blamed turbulent market conditions in 2022 for its struggles, which largely affected the crypto market.
The London-based crypto exchange added that the harsh conditions have also curbed its growth and revenue. With this announcement, Luno is now the largest exchange in the crypto industry to lay off employees.
According to this Luno’s linked profileThe company has around 960 employees working in various offices around the world.
The company has offices in Africa, Europe and Southeast Asia. About 35 percent of the workforce is slated to be laid off as the company seeks to cut costs amid a challenging financial year. That puts the number of layoffs above 330.
A Luno spokesperson told CNBC that the marketing team would be the area most affected by the sack plan. However, operations and compliance teams will face minimal or no impact.
A series of economic problems
DCG, the conglomerate that owned Luno, had a series of financial problems that never ended. Just last week, the company suspended dividend payments to preserve its liquidity. DCG’s troubles began with a bankruptcy filing by its crypto lender, Genesis, in November 2022 following the collapse of FTX.
Additionally, the company and its CEO, Barry Silbert, are also facing a securities class action lawsuit (SCA). The SCA was filed alleging that Genesis creditors violated securities laws by conducting an unregistered securities offering.
Other ongoing issues facing the troubled DCG include allegations by creditors against Silbert of a fraudulent scheme to hide $1.1 billion in losses on a string of bad bets made on the BTC market.