Crypto Winter Deepens: These 2 Major Exchanges Slash Workforces To Prepare For 'Worst-Case Scenario'

Zinger Key Points
  • Crypto crisis escalates, forcing major exchanges to cut staff strength.
  • Bybit and Australia-based Swyftx each lay off over 30% of workforce.

Major exchanges Bybit and Australia-based Swyftx have laid off a third of their workforces, just a week after Kraken announced job cuts, amid a deepening crypto winter.

Ben Zhou, co-founder, and CEO of Bybit unveiled a reorganization plan that calls for a significant reduction in the company's staff across different verticals.

“We are all saddened by the fact this reorganization will impact many of our dear Bybuddies and some of our oldest friends,” he said.

According to independent reporter Colin Wu, the percentage of layoffs was 30%, and those who were affected would receive additional three months of pay.

Wu previously reported in June that Bybit made the first round of layoffs without publicizing the move, claiming unsustainable expansion.

In just two years, Bybit's staff had increased from a few hundred to over 2,000.

“It's important to ensure Bybit has the right structure and resources in place to navigate the market slowdown and is nimble enough to seize the many opportunities ahead,” Zhou further said.

Following the collapse of FTX, Bybit established a $100 million support fund on Nov. 24 to give institutional traders access to liquidity.

The fund was distributed at a 0% interest rate and made available to qualified high-frequency trading firms and market makers.

Also read: $35.6M Seized From Singaporean Banks By Three Arrows Capital Liquidators

Each candidate was only eligible to receive a maximum of $10 million, with the understanding that the money will be utilized for spot and perpetual Tether trading on Bybit.

Swyftx Lays Off 35% Workforce

Meanwhile, Swyftx, an Australian-based cryptocurrency exchange, announced the layoff of 90 employees in anticipation of the "worst-case scenario" that could result from the fallout of FTX and a potential decline in global trading volumes.

Swyftx co-CEO Alex Harper announced the job cuts in a statement on Dec. 5 and noted that, despite having no exposure to FTX, the company was "not immune" to the repercussions of the collapse of the exchange.

“As a result, we have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during H1 next year and the potential for more black swan-type events,” Harper said.

Harper said that making the difficult choice was vital to surviving the protracted crypto winter.

“Our business is uniquely well-positioned to weather events like FTX... But as much as we might wish it, we do not exist in isolation from the market and that’s why we are acting fast and acting early by significantly reducing the size of our team,” he said.

The recent round of staff reductions come after another round in August 2022, when 74 employees, or 21% of the company's workforce, were let go.

Harper said when the market peaked in 2021 the company "grew too fast," and now "we are simply far larger than we need to be to operate and grow."

Digital Surge Stops Withdrawals

Another Australian company affected by the FTX epidemic is Digital Surge, an Australian trading platform that stopped accepting withdrawals last month

The cryptocurrency exchange informed customers that withdrawals and deposits had been suspended on Nov. 16 and that they would provide further information within two weeks.

Although, as of the writing of this article, the company has not made any new public statements.

Next: Novogratz-Led Galaxy Digital To Acquire Custody Platform GK8 From Bankrupt Celsius

Photo: Courtesy of shutterstock

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Posted In: CryptocurrencyNewsMarketsBybitCrypto Exchangescrypto wintercryptocurrenciesSwyftx
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