Crypto Platform Luno Sheds 35% of Workforce

Luno, the digital assets exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term based in London, announced a massive workforce reduction yesterday, feeling the harmful effects of the prolonged crypto winter and turbulence in the technology industries.

Luno Cuts Massive Part of Its Team

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.

"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.

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.

"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.

Watch the recent FMLS22 panel on crypto market structure.

Digital Currency Group Says Goodbye to 500 People

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.

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, the company filed for bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term protection.

HQ Digital ceased operations in January 2023, which could affect the position of at least 26 people, according to LinkedIn data.

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.

Luno Joins the Crypto Layoff Wagon

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.

Gemini exchange announced its third round of job cuts, 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.

Last week, a cryptocurrency software company ConsenSys announced a similar decision. 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, shared plans to lay off 20%, or 950 people.

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 FTX in November and the failure of Terra in May.