Austria-headquartered cryptocurrency trading platform Bitpanda revealed in a blog post on Saturday that it is reducing its staff to maintain stability.
With the onset of cryptocurrency winter, Web3 companies are in an uncomfortable position to lay off employees.
During a corporate call on Saturday morning, Bitpanda disclosed a desired workforce of 730, or 34% of its current headcount. According to several news sources, the company employs around 1,000 employees.
Bitpanda joins a growing number of crypto firms that have announced cuts in response to recent market volatility.
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Bitpanda follows in the footsteps of crypto firms in job cutting
Other companies that have reduced their workforce include Crypto.com, BlockFi, Bitso, Buenbit, and Coinbase, which have cut their employment by nearly 20 percent and withdrew previous job offers.
Bitpanda said that it acknowledged its failures, emphasizing the current bear market, geopolitical tensions, rising inflation and wider global economic problems:
“We have reached a point when more people joining did not make us more productive, but instead added to coordination costs, especially in light of the reality of this new market… now that we look back. So we know that our recruitment rate was volatile. That was a mistake.”
Bitpanda raised $263 million in Series C funding last August, valuing the company at $4.1 billion, and then began an ambitious expansion into new territories.
Considering that the market cap of crypto assets has decreased by more than $1 trillion this year, the valuation of the company could be a fraction of that amount at present.
Bitpanda said affected employees will receive benefits “beyond” labor law, including personal coaching with talent acquisition aides, references and psychological counseling.
Bitpanda was founded in October 2014 by Paul Klenschek, Eric Demuth and Christian Trumer as a trading platform for digital assets such as bitcoin, ethereum, and commodities such as gold and silver.
Crypto total market cap at $941 billion on the daily chart | Source: TradingView.com
CEO says he is ‘completely comfortable’ about position
Co-Chief Executive and Co-Founder Demuth told Sifted in an interview last month that he was “completely relaxed” about the current freefall in the crypto markets and that such conditions “really don’t matter.”
He said that when it comes to the company, they are “unusual” because they have been making consistent profits every year since they launched eight years ago.
Bitpanda is backed by tech billionaire Peter Thiel, who led a series of funding rounds for the European exchange between September 2020 and August 2021, totaling more than half a billion dollars.
Demuth indicated that he is not surprised by the current state of global crypto markets as he has “a good cash reserve” if the crypto winter continues for a long time.
“We don’t have any concerns there,” he said.
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Featured image from Coinnounce, chart from TradingView.com