Crypto company, Luno has announced that it will be laying off 35% of its workforce as a result of challenging market conditions and a downturn in the broader tech industry. According to the company, the global economic downturn, coupled with a downturn in the tech sector, and a series of shocks to the crypto industry, including Luna, Three Arrows, and FTX, have had a compounding effect on the company’s growth and revenue numbers.
In a statement, Luno stated that its new strategy is to focus on the company’s core strengths and to substantially decrease its cost base. This will include employee headcount in all of its markets, in order for the company to be set up for success going forward. The company also sent a direct message to its staff, appreciating those affected for their contribution to the company’s bottomline but also included what looked like a note of warning that “customer funds are safe and operations continue as normal despite these very challenging circumstances.” Odd.
Luno’s announcement is the latest in a series of massive tech layoffs that have occurred in recent months. The broader tech industry has been hit hard by the economic downturn, with many companies being forced to cut costs and reduce their workforce in order to stay afloat. This trend is likely to continue in the coming months, as companies continue to struggle with the economic fallout of the pandemic.
