Luno Cuts 20% of Workforce as it Shifts Focus to B2B Services and Local Stablecoins

Luno, one of the longest-running crypto exchanges focused on emerging markets, has laid off 20% of its workforce in a bid to pivot towards business-to-business services and local stablecoins.

The company's CEO, James Lanigan, cited two main reasons for the layoffs: the decline in major cryptocurrency values this year, which has reduced retail trading activity, and the investment in automation technologies that have changed the resource model required to run the business effectively.

Luno aims to broaden its institutional investor services, strengthen infrastructure and compliance, and increase investment in retail offerings. The company plans to allow banks, fintechs, and telecom operators to provide cryptocurrency services under their own branding, with Luno supplying liquidity, wallet infrastructure, and compliance support.

The company also plans to issue a rand-backed token to facilitate cheaper transfers within South Africa and to other countries, leveraging its existing user base of 16 million. This move is part of the broader trend in the cryptocurrency industry where exchanges are moving away from speculative retail trading towards providing infrastructure for institutions and payment solutions.