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Bitpanda, an Austria-headquartered cryptocurrency trading platform, revealed in a blog post on Saturday that it was reducing its staff to maintain stability.
With the onset of the crypto winter, Web3 companies are in the throes of layoffs.
During a corporate call on Saturday morning, BitPanda revealed 730 desired employees or 34% of its current headcount. According to numerous news sources, the company employs about 1,000 employees.
BitPanda joins a growing number of crypto firms that have announced cutbacks in response to recent market volatility.
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Bitpanda follows in the footsteps of crypto firms to cut jobs
Other companies that have cut their jobs include Crypto.com, BlockFi, Bitso, Buenbit and Coinbase, which have cut their jobs by about 20 percent and withdrawn previous job offers.
Bitpanda acknowledges its own failure in emphasizing the current bear market, geopolitical tensions, rising inflation, and broader global economic problems:
“We have reached a point where more people joining us has not made us more productive, but instead has added adjustment costs, especially in light of this new market reality. Now that we look back, we know that our recruitment rate was not sustainable. That was a mistake. “
Bitpanda raised $ 263 million in Series C funds last August, valued the company at $ 4.1 billion, and has since embarked on an ambitious expansion into new areas.
Source: AdobeStock/Ralf
With the market value of crypto assets falling by more than $ 1 trillion this year, the company’s valuation is probably a fraction of that amount.
Bitpanda said affected workers would receive benefits that would go beyond labor law, including personalized coaching, referrals and psychological counseling with talent acquisition partners.
Bitpanda was founded in October 2014 by Paul Klanshek, Eric Demuth and Christian Trammer as a trading platform for digital assets like Bitcoin, Etherium and products like Gold and Silver.
Crypto total market cap at $941 billion on the daily chart | Source: TradingView.com
CEO says he is ‘completely relieved’ of the situation
Demuth, co-chief executive and co-founder, told Sifted in an interview last month that he was “completely relaxed” about the current free fall in the crypto market and that such a situation “doesn’t really matter.”
He said when it comes to companies, they are “unusual” that they have been making steady profits every year since they were launched eight years ago.
Beatpanda is backed by tech billionaire Peter Thiel, who led multiple fundraisers for a total of more than half a billion dollars in European exchanges between September 2020 and August 2021.
Demuth has indicated that he is not upset by the current state of the global crypto market because they have “a good cash reserve” if the crypto winter continues for an extended period of time.
“We have no worries there,” he added.
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Featured image from Coinnounce, chart from TradingView.com
