Due To Bear Market, Banxa Crypto Exchange Lays 150 Employees

Banxa PHK is broken. (photo: Banxa)

JAKARTA – An Australian crypto trading platform, Banxa, has reportedly cut its employees amid falling crypto prices in recent weeks. Banxa believes that the bear market will last for the next year.

Therefore the company decided to lay off almost half of its total employees. In fact, during the bull market last year, Banxa experienced a significant increase and added about 250 employees. During the current bear market, Banxa was forced to cut 150 employees.

Following the changes, the company will focus its operations on the Australian and Philippine markets. It should be noted that European Managing Director Jan Lorenc is also reportedly leaving the firm, meaning that Banxa's ambitions to expand on the Blue Continent will be put on hold for now.

In an email addressed to employees, CEO Holger Arians explained that organizations must take “firm action to reduce costs now, or our company will not succeed in the long term."

“Although we have made a number of budget cuts, our employee costs remain too high for us to be able to continue operating within our current structure … we expected to make gradual adjustments to the Banxa business, but macro conditions accelerated our timing", added Arians.

On the other hand, Arians believes his company will emerge as a major player in infrastructure in the latest generation of internet, Web3. He also believes that the decline in the crypto market will continue for another year when the US is in recession.

In addition, major crypto trading platforms such as Gemini, Coinbase, ByBit, FTX and others have cut their staff. In addition, BlockFi is also downsizing workers at its company. Despite this decision, companies from other crypto industries such as Binance and Ripple have decided otherwise. Both recruited massive employees.