Luno cuts 20% of staff as automation reshapes exchange operations
In brief
- Luno cutting 20% of global staff due to automation and operational improvements
- CEO James Lanigan cites material investments in tools reshaping resource requirements
- Second major workforce reduction; Luno shed 35% of staff in January 2023
- Exchange prioritizing B2B unit expansion and fintech partnerships
- Crypto industry consolidation wave accelerates across multiple platforms
Automation and Operational Efficiency
Luno has made material investments in automation and broader operational improvements over the last year, according to Lanigan. The exchange is developing tools that are rapidly changing the resource model required to run the business effectively. This restructuring comes as the company pivots toward a leaner operational footprint.
The exchange serves 16 million users across Africa and Asia-Pacific, making it a significant player in those regions. Yet this is not Luno's first major reduction. The exchange shed 35% of its staff in January 2023, blaming an incredibly tough year for the crypto market at that time.
Shift to Business-to-Business Infrastructure
The restructure aims to scale Luno's business-to-business unit, allowing lenders, fintechs and telecoms firms to offer crypto under their own brands. Discovery Bank in Johannesburg is already a partner in this initiative.
Beyond trading infrastructure, Luno is expanding into stablecoins. The exchange is a founding participant in ZARU, a rand-backed stablecoin, alongside Sanlam, Lesaka Technologies and EasyEquities. Luno plans to replicate this model in other markets where local-currency infrastructure is thin.
Industry-Wide Consolidation
Luno's cuts fit into a broader pattern. Crypto.com cut 12% of staff in March, calling it a pivot to enterprise-wide AI. Coinbase cut 14% in May. BitGo cut nearly 15% of staff in June, with CEO Mike Belshe framing the move around AI-powered infrastructure. Dune Analytics cut 25% of staff, and Block shed some 4,000 jobs in February, about 40% of its workforce.
The industry is also seeing platform exits. BitMEX announced it will close on September 23. BitMart followed with an orderly wind-down after nine years of operation.
Roshan Dharia, CEO of investment firm Echo Base, characterized the moment as a "period of significant consolidation in digital assets." Whether Luno's B2B pivot and stablecoin expansion can offset the loss of staff remains to be seen.
