Crypto Trading Platform Bitpanda lays off 250 employees amid a volatile market
- With this lay off, Bitpanda will be reducing its headcount from nearly 1,000 employees to 730.
- The company stated that the layoff move was triggered by a need to be “robustly well-capitalized to navigate the storm and get out of it financially healthy”.
Austria-based Bitcoin(BTC) trading platform Bitpanda is the latest in the list of crypto firms firing employees amid market volatility. Bitpanda announced that it has laid off 250 employees as the crypto market keeps crashing.
The trading platform announced that it would be reducing its headcount from nearly 1,000 employees to 730. Justifying the move, the company stated that it was a tough but necessary decision and they are confident that the new organizational design will help them become more focused and effective.
The company stated that the lay-off move was triggered by a need to be “robustly well-capitalized to navigate the storm and get out of it financially healthy.” Bitpanda points out the change in market sentiment and rising inflation as factors that made them take this “decisive action.”
In order to support laid off employees, the company stated it will offer packages that “go beyond the employment law requirements in the market”. The laid off employee support packages, will include mental health support, references, and an employee assistance program (EAP).
In its official announcement titled ‘the way Forward,’ Bitpanda further revealed problems with infrastructure and internal processes to onboard new joiners successfully. Bitpanda described their earlier hiring speed as “unsustainable”. “We reached a point where more people joining did not make us more effective, but created coordination overheads instead, particularly in this new market reality.”
Apart from Bitpanda, crypto platforms like Crypto.com, Bitso, Buenbit, BlockFi, and Coinbase, have also laid off employees in the wake of the recent market crash. Earlier this month, Coinbase CEO Brian Armstrong announced that the cryptocurrency exchange would be laying off 18% of its workforce, blaming the broader market turndown.Crypto.com also announced lay off 260 employees, citing choppy market conditions.