The unlucky layoffs were caused by inflation, a recession, and the bear market, according to Australian cryptocurrency exchange Swyftx.
Swyftx, an Australian cryptocurrency exchange, had to fire 21% of its employees in order to cut costs while it navigated the current bear market.
74 coworkers had to be let go, according to a statement from co-CEOs Alex Harper and Ryan Parsons dated August 17; this is because the economic environment in which they were hired has drastically changed to what it is now:
“As you’re all aware, we are operating 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.”
“We want to be very clear that impacting our teammates in this way is a last resort and is not, in any way, a reflection of the talent or commitment of those individuals,” they added.
A representative from Swyftx expanded on the decision by pointing out that “this was a hard decision but a prudent one that ensures our costs are compatible with this extended period of economic uncertainty.”
“We are deeply grateful for everything the team members who are leaving us have done and we’re working to support them through this extremely hard period,” they said.
With U.S. exchanges Coinbase and Gemini both cutting their personnel by 18% and 20% over the past few months, Swyftx joins a long list of crypto startups that have experienced growing pains as a result of the significant downward trend in crypto this year.
A $1.5 billion merger between the cryptocurrency exchange and the Australian online investing service Superhero was announced in June. The deal is anticipated to close in the middle of 2023.
John Winters, a co-founder of Superhero, stated at the time that the two platforms will function independently of one another and that no employment losses are anticipated as a result of the merger.
The announcement also comes in the wake of a significant employee purge at Singapore-based exchange Crypto.com, which in June fired 260 workers or 5% of its workforce.
The number may reach as high as 1,000, according to a number of unconfirmed reports posted online this week, though it’s important to note that these reports came from anonymous persons who claimed to be familiar with the situation.
