Luno cuts 35% of its workforce as DCG battle challenge

Layoffs by crypto exchanges continue, with Luno employees being the latest victims. The company has announced that it will be letting go of around 336 employees.

Unfortunately, back-to-back layoffs in the tech sector have become the new norm in 2023. Employees of large tech companies such as Google and Amazon, as well as several crypto exchanges, have also been affected by the layoffs.

Digital Currency Group-owned Luno exchange is laying off 35% of its workforce due to turmoil in the tech industry.

Challenges facing Luno parent DCG

Luno is available in 43 countries and has more than nine million customers, according to its LinkedIn page. Its South African branch also helped the Advertising Regulatory Board of South Africa formulate specific crypto advertising rules.

The crypto exchange employs 962 people. Therefore, 35% layoffs would affect around 336 employees.

CEO Marcus Swanepoel told CNBC, “2022 has been an incredibly difficult year for the broader tech industry and the crypto market in particular. Luno is unfortunately not immune to this turbulence, which has impacted our overall growth and revenue numbers.

Luno’s parent company – Digital Currency Group (DCG) is facing huge challenges as its lending arm Genesis filed for bankruptcy on January 20. DCG is also considering selling its crypto outlet – CoinDesk.

Mass crypto exchange layoffs

Crypto exchanges are on a layoff spree in 2023. Justin Sun’s Huobi exchange announced it was laying off 20% of its workforce in order to maintain a leaner team. While slashed 28% of its workforce to achieve profitability in 2023.

Coinbase, one of the largest crypto exchanges after Binance, also announced that it will let go of 950 employees. Most exchanges hired aggressively in 2020 and 2021 and are now in strict cost-cutting mode.

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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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