Cryptocurrency Exchange Swyftx Lays Off 40% of Its Workforce Amid Bad Market Conditions By DailyCoin

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© Reuters Crypto Exchange Swyftx is laying off 40% of its workforce amid poor market conditions
  • Swyftx is cutting its workforce by 40%, down to 90 employees.
  • The exchange made a decision to prepare for the worst case scenario of an FTX crash.
  • CEO Alex Harper believes the layoffs will help the company during the crypto winter.
  • Those affected will receive a consultation invitation in their mail.
  • Notably, Swyftx will reduce its workforce for the second time this year.

Due to the deteriorating market conditions, popular Australian cryptocurrency exchange Swyftx has decided to cut its workforce by 40%. The development was announced in a blog post on Monday by co-CEO Alex Harper.

“Today, we announced the toughest decision Angus and I have ever had to make in our careers. We are saying goodbye to 90 talented friends and colleagues,” said the CEO. According to Harper, the exchange made the “difficult” decision to fire 90 workers as a measure to prepare for the worst-case scenario resulting from FTX Collapse Meanwhile, the CEO insisted that Swyftx had no exposure to the turbulent stock exchange.

Moreover, Harper said that Swyftx expected a drop in global trade volumes in the coming year, causing it to reduce its workforce to cut costs. He believes the layoffs will help the company weather the prevailing crypto winter.

Harper noted: “We must prepare in advance for a worst-case scenario of a further significant decline in global trade volumes during the first half of next year and the possibility of more black swan-type events.”

Swyftx to invite fired workers for one-on-one counseling

The CEO said that those affected by the layoff will receive an invitation in their mail for an individual consultation tomorrow. However, Harper reiterates the exchange’s commitment to paying severance pay, giving them job search support and EAP services.

It should be noted that Harper also announced that Swyftx will henceforth be risk averse in its business policies and has assured its community that these policies will not jeopardize the exchange’s security, compliance, and customer support services.

This is not the first time that Swyftx has reduced its workforce amid the prevailing bear market. It is reported that in August, the exchange laid off 20% of its workforce, approximately 74 members of the company.

In addition to Swyftx, other crypto companies have, recently, reduced their workforce to cut costs. In August, popular cryptocurrency trading platform Robinhood (NASDAQ:) laid off more than 20% of its workforce. Other companies that have done the same include Coinbase (NASDAQ:), Hodlnaut, Vauld, and many more.

on the flip side

  • Wharton management professor Peter Capelli has expressed his views on corporate job cuts:
    “Research evidence has found no support for the general idea that layoffs help company performance. However, there is more support for the idea that where there is overcapacity, such as a market downturn, layoffs help companies.”

Why should you bother

In the aftermath of the FTX crash and subsequent market downturn, the cryptocurrency market is suffering job cuts. Thus, we can see the intensity of the current bear market.

See the original on the Daily Queen

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