- Banxa will allegedly reduce its workforce from 230 to 160 personnel.
- European Managing Director Jan Lorenc plans to depart the business in European market.
According to Banxa, a crypto payments service provider, 30 percent of its workforce will be let off as a cost-cutting measure during the current bear market.
Holger Arians, Banxa’s CEO, in a letter to employees, stated:
“Banxa must take decisive actions to reduce costs now, or else our company won’t be able to succeed over the long run.”
The Australian business provides an on-and-off ramp solution for digital assets, including cryptocurrencies, NFTs, and fiat currency. In another sign of Banxa’s declining interest in the European market, European Managing Director Jan Lorenc plans to depart the business.
The CEO added:
“Like many others in our industry [we] are anticipating another crypto winter, with trading volumes declining significantly. We saw Banxa’s market capitalization nearly halve in a matter of days, and the forecast is that these conditions will most likely continue for another 12 months.”
Layoff Throughout the Crypto Sector
Banxa employs personnel in seven countries, including Australia, Lithuania, the Netherlands, the Philippines, the United States, the United Kingdom, and Canada, according to LinkedIn statistics. Banxa will allegedly reduce its workforce from 230 to 160 personnel.
In order to better weather the oncoming crypto winter, several big cryptocurrency companies have also reduced their personnel numbers, including Coinbase, Crypto.com, Gemini, BlockFi, and Robinhood. Trading fees are a major source of income for most crypto platforms since they are directly linked to the number of trades.
However, since trade volumes have dropped recently, this income stream has evaporated considerably. According to CMC, the cryptocurrency trade volume yesterday was $50 billion across all exchanges, down 60% from its high of $124.5 billion on November 11, 2021.
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