Swyftx Cuts Staff By 21% Because Of Market Downturn

Swyftx cuts staff by 21% because of market downturn in order to cut expenses, while it navigates the tough market situation at the moment. The percentage translates to 74 employees.

Swyftx Cuts Staff By 21% Because Of Market Downturn

Swyftx, an Australian cryptocurrency exchange, was forced to lay off 21% of its workers in order to cut expenses while it navigates the present bear market.

According to a Wednesday statement from co-CEOs Alex Harper and Ryan Parsons, 74 colleagues had to be let go since the current economic context in which they were employed had transformed radically to what it is today:

“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.”

“We want to be very clear that impacting our teammates in this way is a last resort and is not, in any way, a reflection of the talent or commitment of those individuals,” they added.

Swyftx’s representative elaborated on the decision, stating that this was a difficult choice, but a smart one that guarantees their expenses are compatible with this protracted period of economic uncertainty.

Thank You, But Goodbye

They also stated that they are deeply grateful to the team members for everything they have done and that they are working to support them through this period. This statement pertained to those employees who were unfortunately laid off.

Swyftx joins a long list of crypto startups that have experienced growing pains as a result of this year’s significant decline in crypto, with the US exchanges Coinbase and Gemini both reducing their employment by 18% and 20% in recent months.

In June, the crypto exchange announced a $1.5 billion merger with the Australian online investment platform Superhero, which is anticipated to close in mid-2023.

Superhero co-founder John Winters stated at the time that the two platforms will function independently of one another and that no employment losses are foreseen as a result of the merger.

The announcement comes on the heels of a large staff layoff at Singapore-based exchange Crypto.com, which laid off 260 individuals in June, accounting for 5% of its workforce. Crypto.com seems to recovering and is trying to expand in the UK.

Various unsubstantiated claims online this week suggested that the amount may reach as high as 1,000, however it’s worth remembering that this information was provided by unknown persons who claimed to be close to the situation.