Australian Crypto Exchange Reduces Workforce by 35%

Australian crypto exchange Swyftx laid off 90 people to prepare for a potential market decline during H1, 2023. The exchange said that it does not have any direct exposure to FTX, however the job cuts are a result of the crypto downturn caused by FTX.

Swyftx, an Australian crypto exchange, announced on Monday that it has slashed 90 jobs as a result of the market collapse. According to a spokeswoman, the exchange had about 259 people before the layoffs, which would indicate that Swyftx is decreasing about 35% of its whole employment. Swyftx said that it has no direct connection to the insolvent crypto exchange FTX. The company claimed that the layoffs are due to FTX’s disruption of the cryptocurrency market.

The layoffs occur while the cryptocurrency industry is still reeling from the aftermath from FTX and the ensuing market slump.

Within seven days, all impacted workers will receive their severance pay. Additionally, they will receive an ESOP for their employment plus six months, and Swyftx will provide job search support and offer EAP services.

Whether directly or indirectly, the FTX meltdown has led to significant changes in several financial and cryptocurrency firms. Some of them even had to seek bankruptcy relief.

A Wave of Layoffs Among Exchanges

Early this year, a number of major cryptocurrency platforms began condensing the size of its employees in order to save money during the protracted bad market.

In June, Gemini laid off almost 10% of its workers, and in July, it added more than 60 people to the list.

During the summer, the US-based exchange Coinbase laid off 18% of its staff, while Huobi reduced its workforce by 30%.

CryptoCom, BitMEX, and Bybit are also part of that club, while Binance was among the few to announce expansion plans during the crypto winter. The CEO of the world’s largest crypto platform – Changpeng Zhao – assured in July his entity has a “healthy war chest” and opined the bear market is a great time to hire more people.