Luno Cuts 20% of Staff, Splits Into Three Units After Retail Slump

Crypto exchange Luno is cutting 20% of its global workforce and restructuring into three operating divisions, CEO James Lanigan said July 28. The company blamed a cyclical downturn in retail crypto trading and a growing reliance on automation for the changes.

Luno did not disclose the total number of employees affected. The layoffs include staff in South Africa, where the company was founded in 2013. Formal consultations under Section 189 of the country's Labour Relations Act have started, the company said.

“This was a very difficult decision, and we did not take it lightly,” Lanigan said in a statement. “We have incredible people across this organization, and saying goodbye to colleagues who have contributed so much is hard. It is a decision we’ve had to make – for our customers, our remaining team and our long-term mission – which is to build a structure that is sustainable and focused.”

This is the second major round of cuts in three and a half years. In January 2023, during a severe contraction in digital asset markets, Luno eliminated 35% of its workforce, which then numbered about 960 employees.

The restructuring splits Luno into three units built on a single core platform. The first combines Luno's consumer platform – serving over 16 million users across Africa and Asia-Pacific – with a business-to-business API integration. That service lets institutional partners offer white-labeled crypto trading, custody, and compliance using Luno's backend infrastructure.

The second unit focuses on local-currency stablecoin solutions in emerging markets. It is built around Zaru, a rand-backed stablecoin launched in February 2026 that enables 24/7 same-day settlement at low costs. The third is an institutional arm offering an over-the-counter desk for high-volume asset conversions and cross-border currency settlement networks.

Company officials said the shift toward automated tools fundamentally changed resource requirements, making a leaner structure necessary. Luno also notified users in select markets that services will cease Sept. 1, 2026. Deposits and purchases were disabled June 1; customers have until Aug. 31 to withdraw funds to local bank accounts.

Lanigan separately warned that South Africa's proposed Capital Flow Management Regulations could hurt the country's economic competitiveness, though he did not link the layoffs directly to that policy.

The cuts align with broader retrenchment across the crypto exchange sector. Retail trading volumes have remained subdued on most platforms since the 2023 downturn. Binance, Kraken, and Coinbase have all undergone layoffs in the past two years, though each took a different approach to restructuring. Coinbase leaned into regulatory engagement and custody. Binance focused on compliance hiring. Luno's move toward a leaner, automation-first model puts it closer to the cost-cutting camp.

The stablecoin push is the most differentiating element. If Luno scales Zaru in South Africa and other markets, it could create a revenue stream less dependent on trading volumes. The OTC desk and cross-border settlement network also target a more institutional client base, which tends to generate steadier, if lower-margin, revenue.

Sept. 1 is the next concrete marker. That is when Luno shuts down services in select markets. The number of users affected and the asset value withdrawn will give a sense of the retrenchment's scale. Zaru's adoption rate over the next quarter will signal whether the stablecoin bet is gaining traction. The South African capital flow regulations, if enacted, could force a further reassessment of Luno's strategy there.