Bitpanda becomes next in line to announce layoffs amidst bear market blues
Bitpanda to cut down the employee headcount to 730 people, citing zero compromises on product quality
By Shashank Bhardwaj
Image: Shutterstock
Bitpanda, Austrian crypto and stock trading platform, is next in line to announce a major employee overhaul. Bitpanda is in the process of cutting down the employee headcount to around 730 workers. According to LinkedIn, Bitpanda has laid off approximately 277 part-time and full-time employees.
Bitpanda, in its announcement dubbed “The Way Forward”, has decided to decrease the headcount to be “robustly well-capitalised” in the given fluctuating market conditions and stated, “It is a tough but necessary decision, and we are confident that the new organisational design will help us be more focused, effective and stronger as a company.”
However, the company will provide incentives to ex-employees through support packages like mental health support, EAP (Employee Assistance Program) and references.
Further, the Bitpanda team said that the crypto market breach of $2 trillion was the hyper growth phase for the company. They had reached that point that didn’t require more people to join the firm for efficiency, and their hiring strategy might not have been sustainable. Bitpanda revealed:
“We reached a point where more people joining didn’t make us more effective, but created coordination overheads instead, particularly in this new market reality. Looking back now, we realise that our hiring speed was not sustainable. That was a mistake.”
The total market capitalisation of the digital asset industry has seen a major downfall since November 2021. It has gone down from an all-time high of $3 trillion to below $1 trillion, slashed by over two-thirds. In the wake of the bear market, major crypto firms have been or are in the process of laying off employees.
Bearish market conditions have made another trading firm restructure its organisation. Coinbase, the American crypto asset trading firm, announced the closure of Coinbase Pro Services. In the early days of June, Gemini, a crypto-asset exchange managed by the Winklevoss twins, laid off 10 percent of the employees because of a downward trend in the crypto asset market.
Bitso, the second-largest crypto-asset exchange in Latin America, laid off 80 employees out of 700 full-time workers last month due to the deteriorating global economic situation.
The layoffs are happening due to factors such as the ongoing Russia- Ukraine war, aggravating macroeconomic conditions and rising inflation. It resulted in collapsing outcomes in TeraaUSD Classic(USTC) and Abracadabra’s Magic Internet Money (MIM) ecosystem.
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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