Australian Crypto Exchange Swyftx Cuts Its Workforce By 21% Amid Bear Market

The low prices of cryptocurrencies have lowered crypto services platforms’ income. As a result, it forced many crypto exchanges to lay off their staff to fight the challenging global economic conditions of 2022.

Following the footstep of other companies, Swyftx, an Australian-based crypto exchange, has announced cutting its workforce by 21% to minimize the cost and survive in the bear time. The company’s representative addressed recession, inflation, and the bear market reasons behind their move.

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Co-Chief Executives Alex Harper and Ryan Parsons made the announcement public in a note on Wednesday. Co-Cheifs explained the company would have to let go of 74 employees due to the current economic climate. They added;

“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.”

Furthermore, to encourage the affected employees of the crypto exchange, 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 fight the economic uncertainty.

The added,

“We started growing our team in a very different world and it’s now prudent to make sure our cost base is compatible with this extended period of economic uncertainty.”

Swyftx Crypto Exchange To Pay Allowances To Departed Employees

Additionally, the firm’s representatives claimed that Swyftx offers counseling, career support, and opportunity for departing employees to join the exchange’s stock ownership program.

They added;

“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.”

In June, the Aussie crypto exchange announced its merge with the country’s online investing platform Superhero, which is expected to complete in mid of 2023. Notably, investing company worth around $1.5 billion with over 800,000 investors.

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

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

As noted earlier, it was not the first platform to reduce employees’ count; the popular trading app, Robinhood, has removed 23% of its staff starting this month, equating to 340 workers.

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Other crypto exchanges that followed the measures taking effect of the long-lasted downtrends include U.S. exchanges Gemini and Coinbase. Likewise, they slashed their headcount by 20% and 18% in recent months.

Featured image from Pixabay and chart from TradingView.com