Swyftx, an Australian crypto exchange, has announced the layoff of 90 employees in preparation for a “worst-case scenario” triggered by the repercussions of FTX and a projected reduction in global trading volumes in 2019.
In a statement released on December 5th, Swyftx co-CEO Alex Harper revealed the news, noting that the company was “not immune” to the fallout over the bankrupt exchange despite not having any exposure to FTX. Harper continued, “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.”
A spokesman for Swyftx informed Cointelegraph that the company has reduced its workforce by 40 percent because it expected trade volumes to decrease in the coming months, despite the fact that they had increased in November.
In light of the possibility for a precipitous drop in global trade volumes in the first half of 2023 and future aftershocks from the collapse of FTX, the company has laid off employees, according to a company representative.
It was a difficult choice, but Harper emphasized in his statement that it was important to get through the crypto winter.
“Our company is well prepared to withstand FTX […]” However, despite our best efforts, we cannot operate independently of the market, which is why we are taking swift and preventative action by reducing our workforce by a large amount.
Despite being tangentially impacted by the FTX collapse, the Swyftx spokesman reaffirmed that the company’s financial sheet was unaffected, adding, “Just for clarification, I should stress we have no exposure to FTX.” We do not engage in the practice of making loans against our customers’ assets and instead store all cash in a segregated, 1:1 customer account.
Harper also disclosed that as a result of the layoffs, the firm would become less impulsive in its business choices and that the company’s financial sheet would benefit from the reduction in operating expenses.
According to the spokesman, “Swyftx retains good revenue but we’re not ready to take any chances post-FTX and are being especially careful about expenditures next year.” However, the company will not cut down on areas like as security, compliance, or customer support services.
A spokesman for Swyftx informed Cointelegraph that the company’s R&D division was hit the hardest by the layoffs.
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