Luno to cut 20% of workforce as crypto exchange restructures, South African operations affected

Luno, a Cryptocurrency exchange platform,  is reducing its global workforce by about 20 percent in its latest restructuring exercise, with employees in South Africa among those affected as the company moves to streamline operations amid changing market conditions and a sharper focus on profitability.

The company, which operates across Africa, Europe and Asia-Pacific, informed staff of the decision as part of a broader organisational restructuring designed to simplify its business, improve operational efficiency and position it for long-term growth.

Although Luno has not publicly disclosed the exact number of jobs being cut, the reductions will impact teams across multiple regions, including South Africa, where the company has maintained a significant presence since its founding.

The latest round of layoffs comes as the digital asset industry enters a new phase characterised by tighter regulation, slower venture funding and growing pressure on crypto firms to build sustainable businesses rather than prioritise rapid expansion.

Unlike the widespread layoffs that swept through the cryptocurrency industry following the market crash in 2022, this current restructuring is taking place during a period when digital asset prices have largely recovered, suggesting companies are now focusing on operational discipline and profitability rather than responding to an immediate market crisis. 

Luno, owned by Digital Currency Group (DCG), has spent recent years repositioning its business after navigating one of the most turbulent periods in the cryptocurrency sector.

In January 2023, the company announced it would eliminate 35 percent of its workforce after the collapse of several major crypto firms, including FTX, and the broader downturn that erased more than $1 trillion in value from digital asset markets. 

At the time, the company said weakened revenues and slower growth had made the reductions unavoidable. The latest cuts, however, appear to reflect a different strategic direction.

Cryptocurrency exchanges are shifting away from aggressive hiring toward leaner operating models as regulators impose stricter compliance requirements, and investors demand clearer paths to profitability.

The restructuring also comes as competition intensifies across the crypto trading market, with exchanges investing heavily in institutional services, stablecoin payments, tokenised assets and regulated financial products.

For South Africa, the move highlights the continued volatility of employment within the technology and digital asset sectors despite improving crypto market sentiment. The country remains one of Africa’s most active cryptocurrency markets, supported by increasing retail adoption and a regulatory framework that now recognises crypto assets as financial products under the supervision of the Financial Sector Conduct Authority (FSCA). 

Luno has long positioned South Africa as one of its key African markets, alongside Nigeria and other emerging economies where cryptocurrency adoption has been driven by demand for alternative investment assets, cross-border payments and protection against currency volatility.

Despite the job reductions, the restructuring does not indicate weakening demand for cryptocurrencies but reflects a broader trend across the technology industry where companies are placing greater emphasis on efficiency, automation and sustainable growth after years of rapid expansion fuelled by abundant venture capital.

The development also mirrors a wider pattern across global technology firms, many of which have continued workforce rationalisation programmes even as business performance improves, reflecting a shift from growth-at-all-costs strategies to disciplined cost management and stronger financial performance.