Bybit, Swyftx Join List of Crypto Firms Reducing Workforce

Bybit and Swyftx are the latest victims of the spreading crypto contagion, with both firms announcing job cuts in the wake of FTX collapse.

“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-organization of the business as we move to refocus our efforts for the deepening bear market,” Bybit CEO Ben Zhou said on Sunday.

According to Zhou, the planned layoffs “will be across the board,” affecting 30% of the company’s staff.

He added, “it's important to ensure Bybit has the right structure and resources in place to navigate the market slowdown and is nimble enough to seize the many opportunities ahead.”

1) 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 Zhou (@benbybit) December 4, 2022

With trading volume of about $310 million in the past 24 hours, the Dubai-based Bybit is ranked among the world’s 20 largest crypto exchanges, according to CoinGecko.

Replying to a customer concerned that layoffs will affect ByBit’s operations, Zhou assured that this is not the case as the move is designed to ensure the “long-term sustainability” of the trading platform.

In an interview with Bloomberg, Zhou cited the overall downturn in crypto markets, the bankruptcy of crypto lender BlockFi, and the struggles of crypto brokerage Genesis as signals “to tell us that we are entering into an even colder winter than we had anticipated from both industry and market perspectives.”

Swyftx cuts 90 staff members

Joining Bybit, Australian crypto exchange Swyftx announced on Monday it would part ways with as many as 90 team members or 35% of the company’s workforce.

According to CEO Alex Harper, “Swyftx has no direct exposure to FTX, but we are not immune to the fallout it has caused in the crypto markets.”

“As a result, we have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during H1 next year and the potential for more black swan-type events,” Harper said in a statement.

For the Brisbane-based Swyftx, this is the second round of redundancies this year, with 74 people leaving the company in August. It also comes as Swyftx undergoes a capital raise, with the company pursuing a $1.5 billion merger with stockbroker Superhero.

Today’s news comes less than a week after crypto exchange Kraken announced it was cutting about 1,100 employees, or 30% of its headcount, with outgoing CEO Jesse Powell citing broader economic concerns and a crypto bear market that’s yet to see relief.