Luno Lay Off – Should Other Crypto Employees Be Worried?
As layoff news continues to dominate the headlines, there is no exclusion of crypto firms. Luno is the most recent company to announce layoffs, as it will be laying off 35% of its employees. According to CNBC, CEO Marcus Swanepoel announced a live-streamed town hall on January 25, 2023.
According to the company’s Linkedin page and as stated by the CEO, approximately 337 employees should be affected by the layoff. According to a spokesperson for Luno, the firing will not affect positions such as operations and compliance. However, marketing teams throughout the company’s markets will be the most affected.
Luno was founded in South Africa in 2013. In 2020, the Digital Currency Group (DCG) crypto conglomerate acquired it in a deal intended to expand the exchange’s global presence. Currently, Luno has 10 million customers across 40 markets.
According to Luno, the crypto market’s fluctuations have culminated in one of the exchange’s worst years. Reports indicate that 2022 was a challenging year for the tech industry in general and the crypto market in particular; unfortunately, Luno was not immune to this turmoil, which has affected its overall growth and revenue numbers.
Should Other Crypto Employees Be Worried?
Since months ago, many industry analysts have warned of an impending downturn. Since its inception, crypto has experienced several boom-and-bust cycles, and many argue that its most recent bull run was characterized by excessively rapid growth based on heavy speculation. This has led to a rise in the proportion of layoffs at a number of crypto-focused companies.
In the beginning, everyone increased staff in anticipation of steady growth across the industry, but this has not transpired. According to some experts, those anticipating a swift recovery will be disappointed. The broader economic outlook remains bleak, and fears of a recession are growing. Some experts, such as the economist Peter Schiff, predicted on Twitter that the current round of layoffs is likely just the beginning of many more in the crypto ecosystem and beyond.
Many centralized cryptocurrency exchanges, including Luno, have recently resorted to staff reductions. Coinbase, which is amongst the largest crypto exchanges, laid off about 950 employees in January 2023, following a decrease of 1,100 positions in June 2022. While the near-term outlook for cryptocurrencies isn’t looking completely promising, industry experts agree that writing them off entirely would be a mistake. To begin with, there is still a tremendous amount of money in circulation. It is hoped that crypto projects will use the lessons of this volatility to refocus on sustainable growth and consumer-focused initiatives rather than quick wins. Even though the cryptocurrency market has seen a slight uptick, many analysts predict that the worst is still to come; for employees too.