Bitpanda made the “difficult decision” of reducing its employee headcount to approximately 730 individuals after having a front-row seat to the crypto market crashes of recent weeks.
Bitpanda, an Austrian crypto and stock trading platform, joins the growing list of corporations announcing major layoffs in an effort to “emerge financially healthy” from the current bear market.
In recent weeks, the bear market has resulted in multiple catastrophic results for numerous ecosystems, like Terra’s (LUNA) and Abracadabra’s Magic Internet Money (MIM) de-pegging fiascos. Bitpanda made the “difficult decision” to reduce the number of employees to approximately 730 after observing the accidents from the front row.
LinkedIn data shows that Bitpanda is in the process of laying off roughly 277 full-time and part-time employees. the actual number of Bitpanda employees that have announced their intention to leave the company is unknown.
In the release titled ‘The Way Forward,’ Bitpanda backed the decision to reduce staff by emphasising the necessity to be “robustly well-capitalized” in the face of volatile market conditions.
“It is a difficult but essential decision, and we are certain that the new organisational structure will help us become more focused, efficient, and competitive.”
The company provides its former employees with a variety of support services, including mental health help, references, and an employee aid programme (EAP). Bitpanda disclosed issues with its internal processes and infrastructure to properly enrol new members during its hypergrowth era, a period during which the market capitalization of the crypto industry exceeded $2 trillion.
“We reached a point where more individuals joining did not make us more productive, but instead added coordination costs, especially in light of the new market reality. Now as we look back, we know that our hiring rate was unsustainable. That was an error.”
Coinbase, an American cryptocurrency exchange, has announced the discontinuation of its Coinbase Pro services as part of a widespread reorganisation effort to better suit the bear market.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.