Bybit, Swyftx join layoff spree following FTX collapse
Anticipation of continued decline in global crypto trading volumes forces Bybit and Swyftx to layoff employees.
Crypto exchanges Bybit and Swyftx have moved to execute their second round of layoffs in preparation for a worsening bear market, fueled by the FTX collapse.
Bybit CEO Ben Zhou said the staff cuts will allow the company to refocus its efforts and resources on thriving through the bear market. The planned layofsf will reportedly affect 30% of Bybit’s workforce.
Zhou said in his tweet:
2) The planned downsizing will be across the board.
We are all saddened by the fact this reorganisation will impact many of our dear Bybuddies and some of our oldest friends. I am very grateful for all of their contributions to Bybit over the years and we will not forget them.
— Ben Zhou (@benbybit) December 4, 2022
The affected employees will be duly compensated, as ByBit said it will make the offboarding process as smooth as possible.
Swyftx layoffs 90 employees
In the wake of the FTX collapse, Australia-based exchange Swyftx has also completed its second round of layoffs which affected 90 employees, after it let go of 70 employees earlier in August.
Swyftx co-founder Alex Harper said the layoff was necessary to help the firm cut costs, as it anticipates a global decline in trading volumes in the first half of 2023.
In a memo sent to Swyftx employees, Harper said:
“We know not everyone will understand the sudden need for this (job losses), especially since November’s increase in trade volumes… but our priority at this time is to emerge from the current market in a position of strength.”
Harper added that the leading Australian exchange grew too fast as it forecasted a rising global trading volume. However, given the reality of a worsening bear market, it needs to cut down costs so it can continue operating in the new year and beyond.