Swyftx layoffs 40% of its employees. Know the reason

Swyftx, a crypto exchange established in Australia has eliminated about 90 employees, which it clarified was in the arrangement of a “worst-case scenario.”
The worst-case scenario will be a result of the collapse of FTX and a potential fall in global trading volumes in 2023.

The reason of layoff

On December 5, it was announced by Swyftx’s co-chief executive officer, Alex Harper in a statement highlighting that in spite of not having any experience with FTX, the firm was “not resistant” to the collapse over the FTX, adding:

“As a consequence, we have to be ready in advance for a worst-case scene of forthcoming crucial falls in global trade volumes in the first half of 2023 and the potential for more black swan-type happenings.”

A spokesperson of the company told a reliable media source that 40% of employee layoff was also in an expectation of a decline in trading volumes, in spite of these facts growing in number.

“We have to lay off the employees in anticipation of a potentially sharp decline in global trade volumes in the first half of the next year and more consequences from the bankruptcy of

FTX” revealed the spokesperson.

Harper revealed the hard decision was required to just defeat the extended crypto winter:

“Our work is exclusively well-placed to get through happenings such as FTX. However, basically we might want it, we do not live in quarentine from the market and that is why we are working fast and working early by crucially minimizing the size of our team.”

The spokesperson of Swyftx repeated that the balance sheet of the firm was perfect and flawless in spite of it being indirectly influenced by the FTX bankruptcy, adding:

“Just to make it clear, I must say we have no experience regarding FTX. We keep customer’s capital 1:1 and do not lend customer assets to third parties.”

Harper also disclosed that his firm will be more cautious in its business judgements and the employee reduction will lessen the functional costs on its balance sheet.

“Swyftx has strong revenue but we wishing to take any kind of risk after the FTX collapse and are being unusually risk-averse about prices the coming year,” the spokesperson revealed, we also witnessed that prime concerned areas such as security, compliance and customer support services will not be impacted.

The recent employee reduction goes after a wave of reduction in August 2022, which witnesses 74 staffs leaving the company, which was about 21% of its employee at the time.