Austrian crypto and stock trading platform Bitpanda joins the growing list of companies to announce a mass layoff as it aims to “get out of it financially healthy” amid an unforgiving bear market.
Over the past several weeks, the bear market resulted in numerous catastrophic outcomes for many ecosystems such as TerraUSD Classic (USTC) and Abracadabra’s Magic Internet Money (MIM) de-pegging fiasco. Witnessing the crashes from a front-row seat, Bitpanda made the “tough decision” of cutting down its employee headcount to roughly 730 people.
While the exact number of employees intimated to stop working for Bitpanda remains undisclosed, data from LinkedIn indicates that the company is in the process of laying off approximately 277 full-time and part-time employees.
In the announcement, named “The Way Forward,” Bitpanda supported the move to cut down employees by highlighting the need to be “robustly well-capitalized” amid uncertain market conditions, stating:
“It is a tough, but necessary decision and we are confident that the new organizational design will help us be more focused, effective and stronger as a company.”
The company is offering its ex-employees support packages which include mental health support, references and an employee assistance program (EAP). Speaking about its hypergrowth phase, a timeline when the crypto market breached the $2 trillion market capitalization, Bitpanda revealed problems with internal processes and infrastructure to successfully onboard new joiners:
“We reached a point where more people joining didn’t make us more effective, but created coordination overheads instead, particularly in this new market reality. Looking back now, we realize that our hiring speed was not sustainable. That was a mistake.”
Bitpanda has not yet responded to Cointelegraph’s request for comment.
Related: Coinbase to shut down Coinbase Pro to merge trading services
Joining the mass reorganization drive to better suit the bear market, American crypto trading firm Coinbase announced the closure of its Coinbase Pro services.
As Cointelegraph reported, Coinbase Pro’s services will gradually migrate to Advanced Trade, Coinbase’s new trading section accessible via the exchange’s website, over the next several months.