Due to the deterioration of the digital asset markets after the collapse of the FTX exchange, the subsequent bankruptcy of Block Fi and fears of an imminent collapse of Genesis, Australian cryptocurrency exchange Swyftx announced today, Monday, that it will lay off 40 percent of its workforce, about 90 people, due to the deterioration of the asset markets. Digital after the collapse of the external stock exchange FTX.
Alex Harper, CEO of Swyftx, said in a letter to employees Monday that the layoffs were already preparing for a “worst-case scenario” of a continued slump in cryptocurrency markets next year and more grim fallout after events like FTX.
“But as much as we wish we could, we don’t live in isolation from the market and that’s why we act fast and act early by significantly reducing our team size,” Harper continued.
We do so with grief beyond words, and will do all we can to support the affected colleagues. “Most layoffs will occur in the company’s R&D team,” Harper added.
Digital companies around the world are currently reeling from the fallout from the collapse of FTX, which left its clients after billions of dollars in losses, and the crash had knock-on effects on a range of exchanges and other lenders.
The mass layoffs are also the latest in a series of difficulties facing Swyftx, which already cut its workforce earlier this year by 74 employees, saying the decision was an attempt to appropriately size the company’s cost base amid a market downturn.
It also emerged last month that the company — which announced a $1.5 billion merger with stock trading service Superhero earlier this year — was on the way to seeking new funding, which Harper emphasized at the time was not for operational reasons, but to fuel expansion and boost Business balance sheet.
The largest in Australia
On Monday, the chief staff officer admitted that Swyftx has grown very quickly, and has far more employees than any of its domestic competitors.
“We have the largest team of any wholly owned and fully operated Australian exchange, with up to five times more team members than most of our major local competitors… We are simply much larger than we need to operate and grow next year and beyond.”