Crypto Exchange BitMEX to Reduce Workforce by 30% Shortly After CEO Resigns
The 2022 crypto bear market is not retreating as many asset values are down with a corresponding loss on the way to investors. As a result, many firms have declared bankruptcy, while others use various strategies to minimize costs and remain in business.
Currently, some crypto-related organizations have resorted to layoffs to cut operating costs. Among the firms that used this strategy is BitMEX, a Seychelles-based derivatives trading platform. In addition, a Chinese media, Wu Blockchain, recently reported via Twitter that the firm plans to lay off a third of its workforce.
BitMEX resorted to this option a week after CEO Alexander Hoptner, who led for two years, resigned and was replaced by Stephen Lutz.
Other crypto-related firms that implemented layoffs
However, BitMEX is not the only crypto-related firm with plans to reduce its workforce. Galaxy Digital plans to do the same. The latest reports revealed that the New York-based digital financial services provider intends to reduce its workforce by approximately 20%.
According to sources, the firm has not yet decided the exact number of employees to be laid off. However, it may be within the range of 15-20%.
Since Galaxy Digital has up to 375 employees, the layoffs could affect around 50 to 70 employees. The firm’s spokesperson Michael Wursthorn said they are still reviewing the team structure and will share details when finalized.
Other digital asset firms such as Gemini, CryptoCom, Coinbase, Huobi, Bybit and many more also took similar actions in the past. In July, a report came in from an anonymous source that Gemini was laying off 7% of its workforce. According to reports from TechCrunch, Gemini may lay off up to 150 more employees, which is 15% of its total workforce.
In June, Coinbase, Bybit and CryptoCom also laid off some employees at the beginning of the bear market. Furthermore, Huobi, a once prominent crypto exchange in China, laid off 30% of its staff in June due to the crypto downtime.
Image: FXVNPRo
Binance took the opposite stance of expanding rather than reducing
But while other firms are downsizing, Binance, the world’s largest crypto exchange, decided to follow the opposite trend. Despite the extreme market conditions, Binance expanded its team in June 2022.
Binance CEO Changpeng Zhao (CZ), in a statement at the Consensus 2022 conference, boasted of having a healthy war chest. It means that the firm is strong enough to survive the tough macroeconomic conditions and decided to expand the team instead of downsizing.
According to the CEO, Binance invested cautiously and avoided high advertising spend such as Super Bowl ads. CZ confidently stated that the crypto winter is an excellent time to hire new employees.
Meanwhile, other crypto-focused firms like Three Arrows Capital, Celsius Network and Voyager are in a much bigger mess. The crypto winter forced the firms to file for Chapter 11 bankruptcy in the US Bankruptcy Court, as they could no longer stay afloat.
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