Australian Crypto Exchange Swyftx Cuts Workforce by 21% Amid Bear Market
The low prices of cryptocurrencies have lowered the income of the crypto service platforms. As a result, it forced many crypto exchanges to lay off their employees to fight the challenging global economic conditions in 2022.
Following in the footsteps of other companies, Swyftx, an Australian-based crypto exchange, has announced to cut its workforce by 21% in order to minimize costs and survive during the bear market. The company’s representative addressed the recession, inflation and bear market reasons behind their move.
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Co-CEOs Alex Harper and Ryan Parsons made the announcement in a note on Wednesday. Co-Cheifs explained that the company had to let go of 74 employees due to the current economic climate. They added;
“As you are all aware, we operate in an uncertain business environment, with levels of domestic inflation not seen in over two decades, rising interest rates, highly volatile markets across all asset classes and the potential for a global recession.”
Furthermore, to encourage the affected employees of the crypto exchange, the CEOs added that this move does not indicate “the reflection of the talent or commitment of these individuals”; it was the “last resort” to combat the economic uncertainty.
It added,
“We started growing our team in a very different world and it is now prudent to ensure that our cost base is compatible with this extended period of economic uncertainty.”
Swyftx Crypto Exchange to Pay Compensation to Retired Employees
In addition, the firm’s representatives claimed that Swyftx offers advice, career support and the opportunity for departing employees to join the stock exchange’s shareholder program.
They added;
“We are deeply grateful for all that the departing team members have done and we are working to support them through this extremely difficult period.”
In June, the Australian crypto exchange announced its merger with the country’s online investment platform Superhero, which is expected to be completed in mid-2023. Special investment company worth around $1.5 billion with over 800,000 investors.
Speaking about the news that Swyftx is cutting its workforce, Superhero co-founder John Winters said that both platforms will operate separately so that there are no more job losses.
Co-founded by Harper and Angus Goldman in 2018, Swyftx has over 600,000 corporate and retail investors from Australia and New Zealand. In particular, the platform provides access to more than 320 cryptocurrencies.
As mentioned earlier, it wasn’t the first platform to downsize; the popular trading app, Robinhood, has removed 23% of employees start this month, which equates to 340 workers.
Related Reading: Why Coinbase Will Cut 18% of Workforce to ‘Stay Healthy During Recession’
Other crypto exchanges that followed the measures taking effect in the prolonged downtrends include US exchanges Gemini and Coinbase. Similarly, they have reduced the number of employees by 20% and 18% in recent months.
Featured image from Pixabay and chart from TradingView.com
