Luno, the cryptocurrency exchange backed by Digital Currency Group, has laid off roughly 20% of its global workforce. The company cited growing automation capabilities and a prolonged slowdown in retail trading activity across key markets as the reasons behind the cuts.
Why the cuts happened
The layoffs affect employees across multiple offices, though Luno did not specify exact numbers or locations. In a statement, the company said the decision was driven by two factors: the increasing efficiency of automated systems and a sustained drop in retail trading volumes. The exchange has been investing in technology that can handle tasks previously done by humans, reducing the need for certain roles.
Luno also pointed to a broader market trend. Retail trading activity, which surged during the crypto boom of 2021, has been declining for months. The company said the slowdown has been “prolonged” and shows no immediate signs of reversing.
What automation means for the workforce
Automation has been a growing theme across the crypto industry. Exchanges like Luno are using bots and algorithms to manage customer support, compliance checks, and even some trading functions. The company said these tools have become reliable enough to replace manual work, leading to the staff reduction.
Affected employees were notified this week. Luno said it is offering severance packages and outplacement support, but did not disclose the total number of people let go. The company employs about 1,000 people globally, meaning roughly 200 jobs were cut.
Retail trading slowdown deepens
The retail trading slowdown is not unique to Luno. Across the industry, volumes on major exchanges have fallen sharply from their 2021 peaks. Luno, which operates in markets like South Africa, Nigeria, and parts of Europe, has been hit particularly hard in regions where crypto adoption was driven by speculative retail investors.
The company said it expects the slowdown to continue for the foreseeable future. Luno is now focusing on its core products and trying to streamline operations to weather the downturn.
What comes next
Luno has not announced any further layoffs, but the company said it will continue to evaluate its cost structure. The exchange is also exploring new revenue streams, including institutional services and staking products, to reduce its reliance on retail trading fees.
The layoffs come as the broader crypto market remains under pressure from regulatory uncertainty and low volatility. Luno’s next move will be closely watched by investors and employees alike.
