Banxa to layoff 30% of workforce to shelter the “crypto winter”
Terming the move "measures of a response management" Banxa joins the list of companies laying off part of its workforce in this current "crypto winter" to save over $10 million per year.
Banxa announced on June 27 that it is laying off 30 percent of its staff, Australian Financial Review reported. The cryptocurrency operator said in the release that the layoffs add to several measures to cushion the effects of the crypto winter.
The company said it now has a “clear line to profitability” owing to the cost-saving initiatives it activated, one of which is the recently announced layoffs. It added that the cost-saving plans would ensure a more robust roadmap for its long-term success.
Taking “decisive actions.”
Holger Arians, Banxa’s CEO, said in a letter to employees, “Banxa must take decisive actions to reduce costs now, or else our company won’t be able to succeed over the long run.”
As per the release, the company said it would downside its E.U. operations and its executive team on the continent. Consequently, Banxa’s European Managing Director, Jan Lorenc, will exit the company.
The company noted that its priority is increasing its profitability, which includes directing its focus to higher-margin revenue streams. Therefore, the cost-saving initiatives would help it save over $10 million per year.
Further, the company said it would expand its Sell (offramp) feature to support more coins and chains, enhance its API to allow for faster and more efficient onboarding of partners, and increase local payments in Key American, European, and APAC markets.
In a statement to investors, CEO Holger Arians called the moves “measures of a responsible management.” He said:
We have experienced rapid growth over the last year and while we strongly believe demand will resume its global rise, we cannot ignore the current markets downturn and must be careful to grow with the long-term in mind so we can deliver sustainable value to both our partners and our shareholders.
However, the company added that it believes the crypto market downturn is temporary and that growth will resume within the next six to 18 months.
Corporate layoffs continue
Since the start of the crypto winter, several crypto institutions have come under insolvency and liquidation threat. This has informed the layoff spree announced by several crypto institutions since the start of the downturn.
Banxa joins other crypto companies such as Coinbase, Crypto.com, Gemini, and BlockFi, who have also announced layoffs.