Swyftx, a crypto exchange based in Australia, has reduced its workforce by about 21 percent. The exchange confirmed the development in a blog post on its official handle. According to Swyftx, the lingering poor market conditions necessitated the decision.
The company lamented that the prevailing bear market has drastically reduced its revenue. Recall that most crypto exchanges, including Swyftx, rely on fees incurred on numerous crypto trading networks. However, a decrease in trading volume occasioned by poor market conditions has bankrupted these exchanges.
This development comes a few months after the Australian exchange merged with Sydney-based online investment platform, Superhero. As reported, the merger was intended to aid the development of a “super app.” The project, as announced, will enable users to effectively manage cryptos, shares, and superannuation in a single platform. The merger deal was reportedly worth over $1.5 billion and is set to be completed before the end of 2023.
Swyftx’s spokesperson explained that the exchange took the difficult decision to minimize expenditures. He cited recession fears, inflation, and sharp market downturns as threats to the firm’s operations. Similarly, the executives of the Australian exchange, Alex Harper and Ryan Parson, in a note also justified the decision. They noted that Swyftx is dismissing over 74 workers to cushion the effect of the prevailing market trends on the firm.
The executives hinted, “as you’re all aware, we are operating in an uncertain business environment, with 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.”
They maintained that selecting employees to sack or retain was not premised on their talent or commitment to the exchange, stressing that it was done randomly. The executives admonished affected workers to see the development as the “last resort” to wrestle with the prevailing poor market trends. Harper and Parson, in the joint note, further that “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 intends to avail consistent counseling and career aid to all affected employees. The company assures that employees will be able to join its stock ownership program. The exchange expresses regret over the decision, stressing that it is “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.”
Swyftx, with this development, joins the list of crypto firms that have laid off their employees. Coinbase, a similar crypto exchange, had grossly reduced its workforce a few months ago. Also, firms like Hodlnaut and Celsius did the same to cut costs.
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