Australian Cryptocurrency Exchange Swyftx Eliminates Forty Percent of Its Workforce

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Last Updated on December 5, 2022 by Bitfinsider

Swyftx, an Australian cryptocurrency exchange, has said it would lay off 40 percent of its workers, or around 90 individuals, as a result of a deteriorating downturn in digital asset markets following the demise of an international exchange.

In a memo to employees on Monday, obtained by this masthead, Swyftx CEO Alex Harper said that the layoffs were the company’s way of preparing for a “worst-case scenario” of a sustained downturn in crypto markets next year and more “black swan” incidents like FTX.

Harper said to his workers, “Our company is perfectly positioned to withstand FTX.” “However much we would desire it, we do not live in isolation from the market, which is why we are moving quickly and decisively by cutting the size of our workforce dramatically.”

“We do this with a sorrow that is impossible to articulate. Needless to say, we will do all in our ability to assist affected coworkers.” The majority of layoffs will affect the company’s research and development staff.

Cryptocurrency firms throughout the globe are now reeling from the aftermath of FTX’s stunning collapse, which has left its clients out of pocket by billions of dollars and has repercussions for a multitude of exchanges and lenders.

The mass layoffs are also the latest in a string of challenges for Swyftx, which had previously reduced its personnel by 74 people earlier this year in an effort to right-size its cost base in response to a declining market.

It also revealed last month that the company – which announced a $1.5 billion merger with share trading site Superhero earlier this year – was seeking more investment, which Harper said at the time was not for operational reasons, but to drive development and strengthen the business’ balance sheet.

In February, the corporation established a sponsorship agreement with the NRL that continues in effect.

On Monday, the chief executive officer revealed to employees that Swyftx had expanded too rapidly and had considerably more people than its local competitors.

“We have the largest team of any completely owned and run Australian exchange, with up to five times as many team members as the majority of our principal domestic competitors.” We are just far larger than we need to be to function and expand in the coming year and beyond, he added.

“In reality, Swyftx expanded too quickly. Our environment was vastly different at the beginning of the year, and we anticipated that global trade volumes would continue to rise for at least six months longer than they really did.”

We recognize how distressing this news will be for affected team members and their families, particularly around this time of year.

It is not the first local exchange that have recently announced layoffs. Last week, Coinjar, one of the country’s earliest digital asset exchanges, lay off 20% of its workers, with CEO Asher Tan citing the need to “right-size portions of the team in reaction to bad market conditions.”

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