Brutal reckoning for crypto continues as local exchange Swyftx sacks another 90 staff
Brisbane-based crypto exchange Swyftx has sacked another 90 staff, the second round of job losses this year, in the fallout the collapse of high profile global player FTX.
Itās the second round of layoffs for the company, which boasts 630,000 customers, and which announced the loss of about 70 jobs earlier this year.
It follows a global shakeout of the crypto sector following the collapse of US based FTX, once valued at $32 billion. Singapore based Bybit was forced to sack 30 per cent of its staff recently. Coinjar also sacked some its workers last week.
The collapse of FTX followed claims that billions had been siphoned from the company and put into the accounts of other trading companies.
āSadly, we have let go of staff in expectation of a potentially sharp fall in global trade volumes in the first half of 2023 and further aftershocks from FTXās collapse,ā a Swyftx spokesman said. Ā
āPrudently managing the business remains our priority next year. We remain one of the two largest exchange teams in Australia, meaning weāll continue to provide the highest standards of compliance, security and customer experience in the ANZ region.āĀ
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A memo to Swyftx staff by co-founder Alex Harper said the company was not directly exposed to the FTX collapse, but it had to prepare for a worst-case scenario of significant drops of global trading volumes.
Only on Monday morning, The Australian reported that Swyftx had paid out $48.5 million in dividends earlier this year before it tapped the market for funding. It was also in the middle of a merger with budget stockbroking company Superhero.
However, Swyftxās earnings for the June year were slashed to $36.7 million from $48.2 million the previous year.
āWe know not everyone will understand the sudden need for this (job losses), especially since Novemberās increase in trade volumes and this weekās unqualified financial audit, but our priority at this time is to emerge from the current market in a position of strength,ā Harper told staff.
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āAs a business we acknowledge that we are looking at costs through a lens of extreme caution, but Iām afraid we cannot take risks.
āWe are simply far larger than we need to be to operate and grow next year and beyond.ā
āThe truth is Swyftx grew too fast. Our world was very different at the start of the year and our forecasts for global trading volumes to carry on rising for at least six months longer than they did.ā
Harper said the job losses were separate to its equity raising and said that compared with other exchanges, Swyftx was in a position of strength.
āCryptocurrency wasnāt the villain in this story, it was all too familiar greed and indifference.ā
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