The cryptocurrency exchange Bybit has declared that they would be conducting mass layoffs for the second time in 2022. This comes as the sector continues to be plagued by an increasing number of layoffs. Ben Zhuo, founder and CEO of the company, said in a tweet that:
Difficult decision made today, but tough times demand tough decisions. I have just announced plans to reduce our workforce as part of an ongoing re-organisation of the business as we move to refocus our efforts for the deepening bear market.Ben Zhuo
Zhuo noted that the reductions in staff would be across the board as part of the strategy. He said that everyone is upset about the fact that this rearrangement would have an effect on a significant number of their cherished “Bybuddies” as well as some of their longest-standing pals.
It is essential to make certain that Bybit has the appropriate framework and resources in place to manage the slowdown in the market and is flexible enough to take advantage of the numerous possibilities that lie ahead.
Because of this, the firm will be able to keep bringing the crypto ark to people all over the globe with even more zeal and enthusiasm.
Bybit quietly let go of staff on June 20, alleging unsustainable expansion, which was substantiated by papers that were stolen from the company’s internal network. Within a span of only two years, Bybit was able to increase its personnel count from a few hundred to more than 2000.
Crypto industry layoffs have kept going
After the collapse of FTX, cryptocurrency exchanges and crypto-related companies have been hit hard by customer withdrawals and increased regulatory scrutiny.
On November 28, Sam Bankman-crypto Fried’s empire filed for bankruptcy, and as part of the process of restructuring, the company has let go of several hundred workers.
In the month of November alone, there have been many crypto-related layoffs, causing the loss of employment for thousands of individuals due to companies’ concerns that a recession may be on the horizon.
Kraken, one of the world’s largest cryptocurrency exchanges, revealed just last week Wednesday November 30th its intention to terminate the employment of 1,100 workers, which represents nearly 30 percent of the company’s total workforce.
Founder and CEO Jesse Powell blamed the layoffs on macroeconomic and geopolitical factors that have weighed on financial markets.
In addition, Digital Currency Group terminated the employment of 13% of its workforce in October, only a few weeks ago. Due to the decline of FTX, the cryptocurrency market in November has practically been a shambles.
In November, 11,000 workers at Meta were let go, marking the largest drop in staff this autumn. This was followed by a wave of layoffs at Amazon.
Nestcoin, a Nigerian crypto company, may have lost all of its cash and stablecoins due to the collapse of FTX.
Following this announcement, Nestcoin said it would be necessary to reduce its workforce as it refocuses its efforts to be profitable.
Prior to the rest of the month, the leading cryptocurrency exchange in the United States, Coinbase, had to let go of 60 employees. There will be layoffs in the recruitment and institutional onboarding departments at the digital asset trading platform.
In November, Michael Novogratz’s Galaxy Digital Holdings Ltd. said that it is considering laying off as many as 20% of its workers.
Bitcoin’s (BTC) value has dropped by 63% since the beginning of 2020, and the whole crypto market cap has dropped by more than a third in the same time period. During the downturn, companies that had increased their workforce during the bullish years have had to reduce it.