Austrian Exchange Bitpanda Cuts Third of Workforce

Please fol­low and like us:
Pin Share

Aus­tri­an exchange Bit­pan­da cuts almost a third of its work­force as it bat­tens down the hatch­es for an unpre­dictable cryp­to win­ter.

The com­pa­ny, which boasts invest­ments from Alan Howard and Peter Thiel’s Valar Ven­tures, said in a Slack mes­sage to employ­ees that uncer­tain mar­ket con­di­tions and a head­count that is too high influ­enced the deci­sion announced Friday.

The com­pa­ny will cut 230 jobs as it seeks to shed posi­tions whose effect on the company’s progress has been neg­li­gi­ble due to a lack of man­age­r­i­al coor­di­na­tion amidst a grow­ing headcount.

The com­pa­ny joins Coin­base Glob­al Inc., Block­Fi, and Crypto.com in reduc­ing its work­force as it seeks to weath­er the win­ter storm caused by fears of a reces­sion, geopo­lit­i­cal ten­sions, and major sell-offs as investors look to dump riski­er assets like cryptocurrencies.

Bit­pan­da was found­ed by Eric Demuth, Paul Klanchek, and Chris­t­ian Trum­mer in 2014. It gath­ered fame after part­ner­ing with Austria’s state-owned postal ser­vice to sell bit­coin vouch­ers at its 1800 branch­es. The com­pa­ny offers retail cryp­to trad­ing and equi­ty deriv­a­tives and commodities.

Company offers support to retrenched workers

The Aus­tri­an com­pa­ny offers those affect­ed by the work­force reduc­tion assis­tance with find­ing a new posi­tion. The Bit­pan­da Tal­ent Con­nect Hub will pro­vide help with craft­ing a LinkedIn pro­file and CV. At the same time, Tal­ent Acqui­si­tion part­ners will endeav­or to con­nect job-seek­ers with recruit­ment com­pa­nies. Man­age­ment will offer both oral and writ­ten ref­er­ences and access to psy­chol­o­gists for men­tal health support.

Exchanges under pressure from macro forces

The last month or so has seen trad­ing vol­umes on major exchanges decline as cen­tral banks rescind­ed pan­dem­ic-era stim­u­lus pack­ages and fears of ris­ing infla­tion and a pos­si­ble reces­sion scared investors away from more spec­u­la­tive assets. The Finan­cial Times reports that trades in actu­al cryp­tocur­ren­cy and not deriv­a­tive prod­ucts totaled $800 bil­lion from March to May 2022, down over 50% from the same peri­od last year. Also, as reg­u­la­tions sur­round­ing cryp­to assets mature glob­al­ly, costs for exchanges increase.

Coin­base, whose head­count mush­roomed from 3,730 last year to 6,000 as it rode the eupho­ria of a bull mar­ket, announced plans to cut its work­force by about 1000 ear­li­er this year, rescind­ing job offers along the way. A week ago, the chief pol­i­cy offi­cer announced that the com­pa­ny could not rule out fur­ther job cuts.

Bit­pan­da will retract accept­ed job offers, cit­ing a new orga­ni­za­tion­al set­up and pri­or­i­ties obvi­at­ing the need for new hires.

FTX, on the oth­er hand, has said it remains prof­itable, with no plans to trim its 300-strong work­force any time soon. The world’s largest exchange by cryp­tocur­ren­cy vol­ume, Binance also announced that it believes sea­sons of mar­ket decline pro­vide oppor­tu­ni­ties to acquire impor­tant projects eco­nom­i­cal­ly. OKX plans to add about 900 employ­ees to its 2,800 ‑employ­ee work­force with­in the next year.

What do you think about this sub­ject? Write to us and tell us!

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *