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Swyftx cuts 90 jobs as the cryptocurrency winter continues to affect more companies.
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The company follows exchanges like Coinbase, Bybit, and Kraken in reducing its employee headcount to cope with the bear market.
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Swyftx admitted that it grew too fast, and the bear market is now affecting its operations.
Swyftx becomes the latest crypto exchange to cut jobs
Australian crypto exchange Swyft, announced on Monday, December 5th, that it has cut 90 jobs. This represents 45% of the company’s total workforce, as the company has around 200 employees.
This latest cryptocurrency news comes as several companies find ways to cope with the bear market. In its blog post, Swyftx pointed out that even though it doesn’t have any direct exposure to FTX, its operations have been affected by the fallout FTX has caused in the crypto markets. The company wrote;
“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. As we’ve just announced to the team, Swyftx has no direct exposure to FTX, but we are not immune to the fallout it has caused in the crypto markets. As a result, 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.”
Swyftx added that its business is uniquely well-positioned to weather events like FTX. Despite the robustness of its business, FTX’s collapse has affected the broader crypto market, and Swyftx also felt it.
The cryptocurrency exchange added that its priority is to emerge from the current market in a position of strength. This will happen by managing operating costs to ensure its continued financial strength and to keep the confidence and trust of its customers.
Crypto companies continue to struggle in the bear market
Swyftx’s announcement comes a few hours after Bybit, one of the leading crypto exchanges in the world, announced that it is set to cut 30% of its workforce. Bybit explained that the move is to ensure that the company survives the ongoing bear market.
Coinbase and Kraken are some of the crypto exchanges that also reduced their workforce earlier this year.
Swyftx admitted that it grew too fast. The company recorded massive growth earlier this year, but the bear market and the recent FTX collapse have affected its operations in recent months.