Crypto exchange Luno is laying off roughly 20% of its global workforce as it leans more heavily on automation and pivots its business model away from pure retail trading toward institutional-grade infrastructure. Chief executive James Lanigan confirmed the cuts in comments to Bloomberg, but declined to disclose the exact number of roles impacted. Luno, which is owned by Digital Currency Group, is based in London and primarily serves 16 million users across Africa and the Asia-Pacific region.
Lanigan said the company has poured “material investments” into automation and broad operational overhauls over the past year. Those efforts include developing internal tools and systems that, in his words, are “rapidly changing the resource model required to run the business effectively.” In practice, that means software and automated processes are now able to handle tasks that previously required larger teams, giving Luno an opportunity – and a justification – to move to what he called a “leaner and adapted structure.”
The latest cuts mark the second major reduction in Luno’s headcount in less than two years. In January 2023, the exchange eliminated around 35% of its staff, citing what it then described as an “incredibly tough year” for the crypto market following a series of high-profile collapses and prolonged price declines. This new round of layoffs continues that trend of aggressive belt-tightening, but is framed less as a crisis response and more as a strategic reshaping of the business.
According to the company’s leadership, the restructuring is closely tied to Luno’s shift in focus. The firm is gradually moving away from being predominantly a retail-focused trading platform, instead positioning itself as a provider of “plumbing” – the underlying infrastructure that powers other financial and crypto services, especially for institutional clients. That can include custody solutions, liquidity provision, compliance tooling, and connectivity for banks, fintechs, brokers, and other large-scale partners that want exposure to digital assets without building everything in-house.
This transition mirrors a wider realignment in the crypto sector. After the speculative boom of 2020-2021 and the subsequent downturn, many exchanges and platforms have concluded that long‑term growth is more likely to come from offering stable, regulated, and scalable infrastructure than from relying purely on high‑margin retail trading flows. Institutions tend to operate on lower fees but generate more predictable volumes, and they care deeply about uptime, security, and regulatory compliance – areas where automation and standardized processes can create a real competitive edge.
For Luno, automation is not just a cost-cutting exercise but a way to industrialize its operations. Tasks such as onboarding, identity verification, transaction monitoring, reconciliation, and even some elements of customer support and risk management can be streamlined with advanced software and data analytics. Where a growing user base once meant expanding customer-facing and back-office teams, sophisticated automation now allows the company to handle higher volumes with fewer people, while arguably improving consistency and reducing human error.
However, that shift carries consequences for employees and raises uncomfortable questions about the future of work in the digital asset industry. Positions in operations, compliance support, customer service, and some mid-level management functions are particularly vulnerable when organizations embrace automation at scale. Luno’s decision illustrates how, even in a relatively young sector like crypto, the classic technology industry pattern is repeating itself: rapid hiring in growth phases, followed by consolidation and automation when markets mature and investors demand profitability.
The move also fits into a broader wave of consolidation and rationalization across the crypto ecosystem. Over the past two years, many exchanges, lenders, and infrastructure providers have either folded, merged, or cut staff as trading volumes normalized and regulatory scrutiny intensified. In this environment, companies with deeper pockets or strong backers – such as Luno’s parent, Digital Currency Group – are under pressure to streamline, specialize, and find defensible niches. For Luno, building out institutional “pipes” and automated systems appears to be that chosen path.
Looking ahead, Luno’s challenge will be executing this strategic pivot without alienating its existing base of retail users, particularly in emerging markets where the platform has built a strong brand. The company will need to maintain reliability and customer trust while reorienting its internal resources toward infrastructure and institutional clients. If the shift is successful, Luno could emerge as a leaner, more resilient player at the core of digital asset markets, rather than on their speculative edges. If it mismanages the transition, the combination of layoffs, competition, and regulatory headwinds could erode the advantages it has built in regions where access to traditional financial services remains limited.