Luno has cut about one-fifth of its global staff amid a significant strategic shift. CEO James Lanigan is steering the South African-rooted crypto exchange away from retail trading, which has struggled to bounce back, towards institutional and B2B markets.
From Retail Popularity to Institutional Ambitions
The company earned its reputation as a friendly entry point for crypto users across Africa, Europe, and parts of Asia-Pacific. However, retail volumes have remained stubbornly low, prompting Luno to recalibrate. Lanigan, who became CEO in March 2023 after serving as COO since 2018, is betting on business-to-business offerings and institutional-grade products, with stablecoin infrastructure as a key pillar of this new focus.
This isn't Luno's first round of layoffs. In January 2023, the exchange slashed 35% of its workforce amid a crypto downturn. Now, roughly 20% of employees are affected once again, though the company insists service disruptions won't occur. Details on the exact headcount and regional impact remain undisclosed.
Lanigan also recently highlighted regulatory concerns affecting Luno’s main market, South Africa. Proposed rules could isolate local companies from the massive $33 trillion stablecoin market globally, complicating growth prospects in the region.
Luno is part of Digital Currency Group's portfolio, which has faced its share of turbulence. DCG weathered the 2023 collapse of its lending arm Genesis and has been consolidating its holdings ever since. Luno’s pivot reflects broader trends in DCG’s strategy to stabilize and grow its assets under challenging market conditions.
With 20% of staff let go this time, Luno shows the shifting crypto landscape retail enthusiasm remains hard to revive while institutional demand holds more promise.
This material is informational and not financial advice.
