This Crypto Venue Fired 40% Of Employees Due To Bear Market

The crypto world has had its fair share of drama as the bear market bites down on the entire landscape. In addition, global inflation has also caused most companies to resize their organizational structure.

Crypto businesses are now planning for effective cost-management strategies to prevent a collapse. However, the fear in the market for most crypto users is high since trusted firms have collapsed.

In light of recent events, Australian cryptocurrency exchange Swyftx has shown 90 of its employees the exit door. It represents a layoff of around 40% of the entire workforce – a significant number.

Swyftx CEO Alex Harper said the company is well-positioned to handle the blowout of the FTX storm on the crypto world.

He believes the crypto market will continue to decline in 2023. This is the reason behind the massive decrease in the workforce.

Layoffs Are Common In Crypto Exchanges

Top cryptocurrency exchanges are sizing down their teams to cut costs and prevent wearing out. Other factors have prolonged the current bear market, and this seems to be the only route to stay afloat.

Coinbase – US-based crypto giant laid off around 18% of its staff. Huobi followed suit – downsizing its staff by 30%. Popular exchange Gemini laid off 10% of its workforce in June, then recruited over 60 new people in July.

Other exchanges that include CryptCorn, BitMEX, and Bybit – reduced their numerical strength. Binance, on the other hand, was one of the few exchanges that expanded operations during the current bearish phase.

Who’s Next?

Alex Harper, the Swyftx CEO, broke the news of the layoffs in a letter addressed to employees. He referred to the staff as “90 talented friends and employees”.

He also distanced Swyftx from any association with the bankrupt exchange FTX. However, he also noted that Swyftx is not immune to the effects of such an event on the crypto market.

Harper believes that sizing down a percentage of the workforce will help the organization survive the chilly crypto winter that has claimed many victims.

According to Harper, Swyftx is one of the top crypto trading organizations; in Australia. He also stated that they are well-positioned to weather the ongoing storm in the crypto market.

All affected employees were promised severance pay within seven days to cushion the effects. Also, they will have access to an employee stock ownership plan (ESOP) for the tenure with additional six months.

The exchange will also provide them with job search support and employee assistance program (EAP) services. Unfortunately, the FTX crash continues with its devasting fallout, with some crypto exchanges filing for bankruptcy.

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