Australian Crypto Exchange Swyftx Cuts its Workforce by 21% Amid Bear Market

Australian Crypto Exchange Swyftx Cuts its Workforce by 21% Amid Bear Market

The low prices of cryptocurrencies have reduced the income of crypto service platforms. As a result, it forced many cryptocurrency exchanges to lay off their staff to battle the challenging global economic conditions of 2022.

Following in the footsteps of other companies, Swyftx, an Australia-based cryptocurrency exchange, has announced that it will cut its workforce by 21% to minimize cost and survive in down times. The company representative addressed the recession, inflation, and bear market reasons behind their move.

Related Reading: Blood on the Streets as Crypto Market Liquidations Surpass $600M

Co-CEOs Alex Harper and Ryan Parsons made the announcement public in a note on Wednesday. Co-Cheifs explained that the company would have to lay off 74 employees due to the current economic climate. They added;

“As everyone knows, we are operating in an uncertain business environment, with levels of domestic inflation not seen in more than two decades, rising interest rates, highly volatile markets across all asset classes, and the potential for a recession. global”.

Additionally, to encourage the crypto exchange’s affected employees, the CEOs added that this move does not indicate the “reflection of the talent or commitment of those individuals”; it was the “last resort” to combat economic uncertainty.

the addition,

“We began to grow 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 allowances to deceased employees

BTCUSD
The price of Bitcoin is currently hovering around $21,000. | Source: TradingView.com BTCUSD price chart

In addition, company representatives stated that Swyftx offers advice, professional support and opportunities for departing employees to join the exchange’s share ownership program.

They added;

“We are deeply grateful for all that the team members who are leaving us have done and we are working to support them during 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 by mid-2023. Notably, the investment firm is worth around $1.5 thousand. million with more than 800,000 investors.

Speaking about the news that Swyftx is cutting its workforce, John Winters, co-founder of Superhero, said that both platforms will operate separately so that no further job losses occur.

Swyftx, co-founded by Harper and Angus Goldman in 2018, has more than 600,000 corporate and retail investors from Australia and New Zealand. In particular, the platform provides access to more than 320 cryptocurrencies.

As noted above, it was not the first platform to reduce the number of employees; the popular trading app, Robinhood, has remote 23% of its workforce as of this month, which is equivalent to 340 workers.

Related Reading: Why Coinbase Will Cut 18% Of Workforce To “Stay Healthy During Recession”

Other crypto exchanges that followed the moves that took effect from long-running downtrends include US exchanges Gemini and Coinbase. Likewise, they reduced their workforce by 20% and 18% in recent months.

Featured image from Pixabay and chart from TradingView.com

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