After Bybit’s plans earlier this week to layoff employees, another cryptocurrency exchange now joined the long list of companies which cut staff. Already, major exchanges like Coinbase made the axe recently thanks to the prevailing market conditions. The crypto layoff saga drags on amid macroeconomic pressure on financial
Crypto Exchange BitPanda To Layoff Staff
In a latest, European crypto exchange BitPanda announced its decision to cut down its workforce. It cited dramatic change in the market sentiment fueled by rising inflation and concerns about an incoming recession. There’s lots of uncertainty in the financial markets right now, it added.
“In keeping up with the industry, our team’s growth rate has been too high. We were facing challenges in setting up the right internal processes and infrastructure to successfully onboard new joiners, put them in the right place to win and enable them to deliver impact.”
From a total workforce believed to be over 1,000, BitPanda decided to scale down to 730 people . “We need to let part of our team go and scale down to a target organizational size of about 730 people.”
The Austria-based company has been on a hiring spree in the past year. It even announced job openings in 14 departments only last month. The job postings came amid a period of significant growth for the exchange. In the 12 months prior to March, the platform’s trading volume surged 1,700%.
BitPanda is the latest entrant to lay off staff amid an industry-wide downturn. Exchanges like Coinbase and Binance have already announced job cuts this year. The bear market has forced these companies to tighten their belts and focus on profitability.
Despite the cutbacks, BitPanda says it remains committed to its vision of becoming “the leading one-stop-shop for crypto investing”. The company plans to focus on its core products and services and continue invest in new technologies.
It remains to be seen how the current market conditions will impact BitPanda’s business in the months ahead. For now, the company is doing everything it can to weather the storm.
BitPanda Rescinds Job Offers
That BitPanda also decided to rescind offers of employment made already speaks it all about the state of affairs. This decision was made since the roles it was hiring for are no longer available in the new organizational setup. “All new hires whose offers are rescinded have already been notified.”
The company also said that people who have already joined the company but are not part of the 730 headcount will be given the option to leave with a separation package.
BitPanda is not the first crypto exchange to withdraw job offers. Top exchange Coinbase had recently put a hiring pause on both new and backfill roles and rescinded a number of accepted offers. This was in response to the current market conditions and ongoing business prioritization efforts, it said at the time.
With the job cuts across different exchanges, it’s evident that the bear market is taking its toll on the industry. Exchanges are feeling the pressure to reduce costs and become profitable. For now, it’s a waiting game to see how the market conditions will play out in the months ahead.
Earlier in the month, crypto exchange Gemini announced it was cutting 10% of its employees. The exchange blamed it on crypto winter alongside existing macroeconomic and geopolitical conditions. “We are not alone,” it said. Certainly, it appears they are not alone in cutting down workforce.