Australian crypto exchange Swyftx has reduced its workforce by 40% announcing the layoffs of a total of 90 employees in anticipation of the “worst-case scenario” that might result from the impact of FTX collapse.
Swyftx co-CEO Alex Harper announced the information in a statement on December 5 and said that, although having no exposure to FTX, the business was “not immune” to the consequences from the collapse of the exchange, adding:
“As a result, we have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during H1 next year and the potential for more black swan-type events.”
A spokeswoman for Swyftx informed that despite these data rising in November, the 40% personnel reduction was also anticipated to coincide with a decline in trading volumes.
The representative said, “We have let off workers in anticipation of a possibly substantial decline in global trade volumes in the first half of 2023 and subsequent aftershocks from FTX’s failure.
Harper said in the statement that the difficult choice was essential to surviving the protracted crypto winter:
“Our business is uniquely well-positioned to weather events like FTX […] But as much as we might wish it, we do not exist in isolation from the market and that’s why we are acting fast and acting early by significantly reducing the size of our team.”
Although indirectly impacted by the FTX bankruptcy, the Swyftx representative maintained that the company’s financial sheet was unaffected, adding:
“Just for clarity, I should say we have no exposure to FTX. We hold customer funds 1:1 and don’t lend customer assets to third parties.”
Harper also disclosed that the personnel reductions would reduce operating expenses on the firm’s balance sheet and that his company would become more risk-averse in its business choices.
The representative said, “Swyftx retains good revenue but we’re not ready to take any chances post-FTX and are being extra careful about expenses next year. Priority areas like security, compliance, and customer support services won’t be impacted, she added.
A Swyftx spokeswoman said that the research and development team at the company was particularly impacted by the job reductions.
The most recent round of staff reductions come after another one in August 2022, when 74 employees—or 21%—of the company’s workforce—left.
When the market peaked in 2021, Harper said the firm “expanded too rapidly,” but “we are just much bigger than we need to be to exist and develop.”
