Overview

  • Luno is laying off around 20% of its global workforce, as announced by CEO James Lanigan to Bloomberg, though he did not specify the exact number of positions affected.
  • Lanigan cited significant investments in automation that are "rapidly transforming the resource model needed for business operations."
  • The London-based exchange, a subsidiary of Digital Currency Group, is shifting focus towards institutional frameworks and stablecoins aimed at emerging markets.

Luno has confirmed a workforce reduction of approximately 20% globally, as stated by CEO James Lanigan in an interview with Bloomberg. While he did not disclose the total number of jobs affected, the exchange, which operates under the Digital Currency Group umbrella, is based in London and serves 16 million customers across Africa and the Asia-Pacific region.

According to Lanigan, Luno has made "significant investments in automation and operational enhancements" over the past year, creating tools that are fundamentally altering the business's resource management, leading to a "more streamlined and adaptive organizational structure."

This marks the second substantial workforce reduction for Luno, which previously cut 35% of its staff in January 2023, attributing the decision to an "extremely challenging year" for the cryptocurrency sector.

Transitioning Focus

The restructuring is designed to bolster Luno's business-to-business segment, enabling lenders, fintech companies, and telecommunications firms to offer cryptocurrency services under their own brands, with Luno providing the necessary liquidity, wallet technology, and compliance support. Discovery Bank, based in Johannesburg, is already collaborating with Luno, and Lanigan indicated that additional partnerships will be announced throughout the year.

Moreover, Luno aims to establish a presence in non-U.S. stablecoins within emerging markets. The company is a founding member of ZARU, a rand-backed stablecoin initiative alongside partners such as Sanlam, Lesaka Technologies, and EasyEquities, and plans to replicate this model in other regions with limited local-currency infrastructure. Lanigan also mentioned that the firm intends to leverage its institutional-settlement services to reduce the costs associated with cross-border money transfers.

Industry-Wide Layoffs

Luno's job cuts are part of a broader trend in the cryptocurrency industry, where numerous companies have been reducing staff. Crypto.com announced a 12% workforce reduction in March, citing a shift towards "enterprise-wide AI," while Coinbase laid off 14% of its employees in May. Other companies like Dune Analytics and BitGo also made significant cuts of 25% and nearly 15%, respectively, with BitGo's CEO Mike Belshe linking the layoffs to a move towards "AI-driven infrastructure." Additionally, Block eliminated around 4,000 positions in February, representing about 40% of its workforce.

This trend reflects exchanges seeking more consistent revenue streams from institutional clients, payments, and infrastructure as retail trading remains volatile. Some firms have ceased operations altogether; for instance, the derivatives exchange BitMEX announced it would shut down on September 23, while BitMart followed suit with an orderly closure just three days later, marking a "significant consolidation in digital assets," according to Roshan Dharia, CEO of investment firm Echo Base.