Luno Lays Off 35% of Its Workforce

In an internal message shared by Luno employees, the company's co-founder and CEO Marcus Swanepoel said that cryptocurrencies have arguably entered a cold winter due to the global recession and the greater downturn seen in the tech sector, as well as under a "series of shocks" including the collapse of companies such as FTX and Three Arrows, which has made the company lay off employees to sustain growth.

"Unfortunately, Luno hasn't been immune to this turbulence, which has affected our overall growth and revenue," Swanepoel says.

"While we anticipated the downturn and proactively planned for a business and funding model that could withstand some of these factors, the scale and speed with which all of these things happened, and all at the same time, put tremendous pressure on our original plans.

"What this means is that in addition to streamlining our strategy to focus on our core strengths, we need to significantly reduce our cost base - which includes the number of employees in all of our markets - for us to be prepared for future success."

Luno concluded by adding that the layoffs will not affect its customers' money or business. This is because a string of cryptocurrency companies have been amid layoffs in recent months, which also includes the likes of Kraken and Coinbase.