- Swyftx is cutting its workforce by 40%, accounting for 90 employees.
- The exchange took the decision to prepare for the worst-case scenario of FTX’s collapse.
- CEO Alex Harper believes the layoffs will help the firm through the crypto winter.
- Those affected will receive a consultation invitation in their mail.
- Notably, Swyftx is cutting its workforce for the second time this year.
Occasioned by the worsening market conditions, popular Australian crypto exchange Swyftx has resolved to cut its workforce by 40%. This development was announced in a Monday blog post by its co-CEO, Alex Harper.
“Today, we’ve announced the hardest decision Angus and I have had to make in our careers. We’re saying goodbye to 90 talented friends and colleagues,” the CEO said. According to Harper, the exchange took the “difficult” decision to dismiss 90 workers as a measure towards preparing for the worst-case scenario inflicted by the collapse of FTX. Meanwhile, the CEO insisted that Swyftx has zero exposure to the troubled exchange.
Further, Harper said Swyftx had foreseen a fall in global trading volumes in the coming year, thereby causing it to reduce its workforce to cut costs. He believes the layoffs will help the firm to get through the prevailing crypto winter.
“We have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during H1 next year and the potential for more black swan-type events,” Harper noted.
Swyftx to Invite Dismissed Workers for Individual Consultation
The CEO said those affected by the layoff would receive an invite in their mail for an individual consultation tomorrow. Harper, however, reiterates the exchange’s commitment to paying their severance, giving them job search support and EAP services.
Worthy of note, Harper further announced that Swyftx would henceforth be risk-averse in its business policies and assured its community that these policies wouldn’t jeopardize the exchange’s security, compliance, and customer support services.
This is not the first time Swyftx will reduce its workforce amidst the prevailing bear market. Recall that in August, the exchange laid off 20% of its workforce, amounting to about 74 members of the firm.
Beyond Swyftx, other crypto firms have also, in recent times, reduced their workforce to cut costs. In August, popular crypto exchange and stock trading platform Robinhood (NASDAQ:HOOD) laid off over 20% of its workforce. Other firms that have done the same include Coinbase (NASDAQ:COIN), Hodlnaut, Vauld, and many more.
On the Flipside
- Wharton management professor Peter Cappelli expressed his views on job cuts by firms: “The research evidence has not found any support for the overall idea that layoffs help firm performance. However, there is more support for the idea that where there is overcapacity, such as a market downturn, layoffs help firms.”
Why You Should Care
In the wake of the FTX collapse and subsequent market downturn, the crypto market is reeling from job cuts. Thus, we can see the severity of the current bear market.