Australian crypto exchange, Swyftx has cut about 35% of its staff in the second round of layoffs, citing the worsening market conditions.
This is the second time the exchange is making such a move. Swyftx laid off 74 employees earlier in August, citing the same bear market. And now, 90 of its employees will leave the company for the same reason.
The co-founder and CEO of the exchange, Alex Harper, made this known in a note sent to all team members. He stated that while Swyftx is not affected by the FTX fallout, the exchange is not immune to the effects such incidence has caused in the cryptocurrency markets.
Therefore, the company has to prepare for the worst-case scenario of a more significant drop in global trade volume in the first quarter of 2023. It also has to expect the potential for more black swan-types events.
According to a press release by Swyftx,
“As a business, we acknowledge that we are looking at costs through a lens of extreme caution, but I’m afraid we cannot take risks. We have the largest team of any fully owned and operated Australian exchange, with up to five times more team members than most of our main domestic competitors.”
Swyftx stated that members of the company might need help understanding the reason for such a decision. The company witnessed a significant increase in November trade volumes and an unqualified financial audit for the week.
However, the company’s main priority is to emerge from the current market in a position of strength. As a result, it has to cut operating costs to ensure sustained financial stability, continued confidence, and trust of its customers.
Finally, Swyftx stated the affected employees will be compensated and receive their severance pay within the next seven days, receive ESOP for tenure plus six months, and have job search support and EAP services available.
