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A deteriorating macroeconomic climate and the collapse of industry giants such as FTX and Terra have weighed on Bitcoin’s price this year.

STR |: Nurphoto via Getty Images

Cryptocurrency exchange Luno is the latest company in the industry to make layoffs, aiming to cut 35% of its global workforce.

The London-based company’s CEO, Marcus Swanepoel, informed employees of the layoffs in a live town hall at 12 p.m. London time on Wednesday.

“2022 was an incredibly challenging year for the broader tech industry and the crypto market in particular,” the company said in a statement shared with CNBC on Wednesday.

“Luno has unfortunately not been immune to this turbulence, which has impacted our overall growth and revenue numbers.”

According to its LinkedIn profile, Luno has approximately 960 jobs, meaning more than 330 jobs will be affected.

The cuts are particularly affecting Luno’s marketing teams. A Luno spokesperson told CNBC that the layoff would have “minimal or no impact on core operations and compliance teams.”

Luno, which has offices in Africa, Southeast Asia and Europe, is part of the crypto conglomerate Digital Currency Group.

DCG is one of several crypto companies that have been hit by the collapse of FTX, which used to be one of the world’s largest crypto exchanges. Genesis, DCG’s lending arm, filed for bankruptcy last week.

Genesis’ bankruptcy filing comes after a dispute with one of its partners, Gemini, over a controversial loan agreement that generated large profits for Gemini’s customers on Gemini’s high-yield loan product, Gemini Through Earn.

Gemini customers hold $900 million in Gemini Earn. The service halted withdrawals after Genesis, which provided funds to large institutional borrowers, stopped repayments from customers.

The crypto industry has been in a slump known as “crypto winter” since the collapse of controversial algorithmic stablecoin terraUSD last May. High interest rates from the Federal Reserve have also spooked market players.

An estimated $2 trillion in value has been wiped from the overall crypto market since the peak of the crypto boom in November 2021, although bitcoin has bounced back slightly since the start of the year.

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TerraUST’s failure, combined with a deep decline in digital currency prices, triggered a cascade of subsequent crypto failures, including Three Arrows Capital, Voyager Digital, FTX, BlockFi, and Genesis.

In a statement shared with employees Wednesday, Luno’s Swanepoel said the industry has seen a “series of shocks” that has led to a tight funding environment and a lack of long-term profitability.

“While we anticipated the downturn and actively planned for a business and funding model that could withstand some of these factors, the sheer scale and speed at which this all happened, and at the same time, put significant pressure on us. original plan,” said Swanepoel.

“This means in practice that in addition to simplifying our strategy to focus on our core strengths, we must also significantly reduce our cost base, which includes the number of employees in all our markets, so that we can create. good luck ahead.”

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