These are rough times for any companies active in the cryptocurrency industry. While fintech firms are cutting jobs, crypto exchanges find themselves in a similar scenario. Bitpanda is the latest company to announce employee layoffs, with hundreds of positions being axed in the coming weeks.
A Tough Decision For Bitpanda
The digital investment provider will reduce its current headcount due to “dramatically altered market conditions”. The second half of 2021 and all of 2022 has been very bearish for cryptocurrencies, sending Bitcoin from an all-time high of $69,000 to the low $17,000 range just a week ago.
Even though overall demand for crypto assets has not diminished whatsoever, exchanges find themselves in an awkward position. For Bitpanda, the loss of revenue forces them to lay off employees. Despite having over 1,000 employees today, the company will reduce that number to 730 and potentially lower. Moreover, like Coinbase, it will rescind accepted job offers. Such behavior is a PR nightmare and will harm the company’s long-term reputation.
In a company statement, Bitpanda explains:
“In keeping up with the industry, our team’s growth rate has been too high…We reached a point where more people joining didn’t make us more effective, but created coordination overheads instead, particularly in this new market reality. Looking back now, we realise that our hiring speed was not sustainable. That was a mistake.”
It is a classic example of companies trying too fast too quickly without a clearly defined contingency plan. Affected employees will receive a bonus package – consisting of talent coaching, references, and mental health support – to ensure they find a new job as quickly as possible. Unfortunately, Bitpanda joins a growing list of crypto firms laying off hundreds of people, including Coinbase, BlockFi, Crypto.com, and Gemini.