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Bitpanda lays off workers amid the market decline

Bitpanda
TL;DR Breakdown
  • Bitpanda sacks staff as market decline intensifies
  • The company laid off 34% of its staff
  • Bitpanda CEO unmoved by the market decline

Bitpanda, a crypto exchange with its headquarters in Austria, has revealed that it is cutting down its staff strength. This is not surprising as major crypto-related firms and exchanges have followed the same route since the start of the crash. According to its blog post, the exchange maintained that its reason was to ensure that sustainability is paramount. In a recent corporate call, the firm mentioned that it had cut about 34% of its present staff.

The company sacked one-third of its staff

According to several statistics, Bitpanda boasts about 1,000 staff. With the market still unpredictable, the firm has followed the steps of other firms that have cut their staff strength. Other firms in the crypto sector that have cut down their staffs include Bitso, Crypto.com, and Coinbase. In its case, Coinbase has to pull existing offers concerning new staff joining the company after announcing a staff cut of 20%.

Bitpanda also mentioned taking full responsibility for the update as it blames the move on specific issues plaguing the entire global economy in recent times. The firm noted that the company has been less productive despite more people joining their staff. It noted that there had been some costs that are now choking the company, and it boils down to the unsustainable rate they were hiring when the market was good.

Bitpanda CEO unfazed by the market decline

Bitpanda was one of the companies that struck gold last year due to its Series C funding which raked in $263 million. After the funding round, the company’s valuation took a great leap to $4.1 billion. After the round, the company announced that it was looking to expand into more areas to suit the taste of its users. With the crypto market already taking a massive beating to shed more than $1 trillion, all bets will go to Bitpanda taking a hit in decline. The company also announced that staff being let go would be compensated adequately in line with the labor laws.

The staffs will also be given opportunities to learn essential skill acquisitions hosted by the company. The company’s co-founder recently said in an interview that he was not moved by the massive decline in the crypto market last month. The CEO, Demuth, mentioned that the company had overcome these falls to make profits over the years, and this year won’t be an exception. Bitpanda has enjoyed the support of billionaire Peter Thiel, who has been instrumental in attracting funds into the exchange since 2020. The company holds a very high cash reserve should things get worse in the market in the coming months.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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