An Australian crypto operator, Banxa, has opted to fire nearly half of its workforce because it anticipates the current bear market to last at least a year. Banxa announced that it will lay off 40% of its staff after the crypto market crash.
Banxa has made enormous strides and increased its team size to 250 individuals, all thanks to the bull market in cryptocurrencies during 2021. Due to the fact that some of its staff are situated in Indonesia, it has also grown outside of Australia.
However, as a result of recent adverse market movements, Banxa was forced to implement some cost-cutting measures, including the cancellation of events and a 150-person workforce decrease.
After the adjustments, the business will concentrate its efforts on the Australian and Philippine markets. The company’s European Managing Director, Jan Lorenc, will also be leaving, so for the time being, Banxa’s plans to grow on the old continent will be shelved.
CEO Holger Arians wrote in an email to the staff that without “decisive action to reduce costs now, our business cannot be successful in the long term.”
Despite the modifications, Arians is still optimistic that his business will grow into a significant infrastructure player in the Web3 world.
He predicts that the crypto winter will likely last another year and that the US could see a recession.
Gemini, Coinbase, and Bybit are three significant participants in the cryptocurrency market that have reduced their staff. The billionaire twins Cameron and Tyler Winklevoss’ Gemini exchange has also announced a 10% layoff of its workforce.
Recently, in a similar fashion Coinbase CEO decided to lay off 18% employees fearing a crypto winter.
