Luno, the cryptocurrency exchange founded in South Africa and now owned by U.S.-based Digital Currency Group, is reducing its global workforce by 20% as part of a restructuring into separate business units, CEO James Lanigan announced Tuesday.
The company did not specify how many employees would lose their jobs but confirmed South African positions are included. A spokesperson told local media that Luno is following the required consultation process with affected staff in the country, as mandated by South Africa’s Labour Relations Act.
Retrenchments governed by local labor laws
In South Africa, dismissals for operational requirements fall under Section 189 of the Labour Relations Act. This section requires employers to engage in consultations with employees before retrenchments can take effect. Luno stated it is complying with this process but has not yet provided specific numbers.
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“This was a very difficult decision, and we did not take it lightly,” Lanigan said. “We have incredible people across this organisation, and saying goodbye to colleagues who have contributed so much is hard. The move was necessary for our customers, our remaining team, and our long-term mission—to build a structure that is sustainable and focused.”
The reductions mark the second major round of layoffs at Luno in less than four years. In January 2023, the company cut 35% of its workforce, affecting over 330 employees at the time. The exchange attributed those reductions to the broader crypto market downturn and called 2022 an “incredibly tough year” for the industry.
Automation and market cycles drive restructuring
Luno cited two main reasons for the latest job cuts: a downturn in retail crypto trading, part of a cyclical pattern observed since its founding in 2013, and its investment in automation. The exchange is developing tools that “are rapidly changing the resource model required to run the business effectively,” making a leaner structure necessary.
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The restructuring will divide Luno into two interconnected units. The first combines its retail exchange with a new “crypto as a service” offering. This allows partners to integrate Luno’s infrastructure—including liquidity, custody, and compliance—under their own brands. Discovery Bank became one of the first to adopt this model in November 2025, embedding crypto trading within its banking app and offering clients access to more than 50 cryptocurrencies.
The second unit focuses on stablecoins and wallet infrastructure. It includes Zaru, a rand-backed stablecoin launched in February 2026. Luno describes Zaru as South Africa’s first institutional-grade, reserve-backed rand stablecoin issued by a regulated entity. It enables same-day settlement in rand, domestically and internationally, with near-zero transaction costs. Network partners include EasyEquities, Lesaka, Sanlam, and Standard Bank.
Geographic footprint narrows ahead of restructuring
The job cuts follow a decision to exit several markets. Luno notified customers in multiple regions that it would stop providing services from September 1, 2026, with accounts set to close permanently on that date. Deposits and buying were disabled on June 1, and the deadline to withdraw crypto passed on June 29. Customers have until August 31 to sell and withdraw funds to a bank account.
“Going forward, we want to focus on our core markets across Africa and South East Asia,” the company told affected customers. “This decision was not taken lightly, and we sincerely apologise for the disruption.”
Consultations with employees in South Africa continue.