The publicly listed crypto-payment gateway company Banxa has laid off 40% of its staff, reports Financial Review. Banxa, which trades in the Australian stock market, finds it difficult to sustain during the current ‘crypto winter’.
The crypto-operator Banxa enables users to convert their fiat money into digital currencies and vice versa. Its stock has fallen nearly 75% since its 52-week high of $ 3.50 and is now trading at $ 0.79. The collapse of the crypto market hit Banxa hard and the firm decided to release a majority of its staff.
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Financial Review reports that CEO Holger Arians held a company-wide meeting “all hands”. The CEO spoke to employees that the company is facing difficulties in the deteriorating market conditions and announced retrenchments in staff will take place.
He called the staff cuts “painful changes” but it was necessary to withstand the market conditions.
A Banxa spokesperson published a statement confirming that the company will now be thinner. “Banxa’s extensive payment arrangements and compliance infrastructure are increasingly valuable to creators and platforms in web2 and web3.”
The spokesman assured investors that despite the job cuts, its balance sheet remains strong. “Banxa is also a veteran company of several operating cycles, its financial performance is available to the public, and its balance sheet is strong.”
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Many crypto exchanges and service companies have reduced their workforce as the market faces downtime. Users have shied away from investing due to the market crash and crypto services are facing huge losses. Read here for a complete list of companies that laid off their staff during the 2022 bear market.
‘Hiring & Firing’ in the crypto sector
Jobs in the crypto market were full during Q1 of 2022, but things took a u-turn for a month. Read here to know which countries around the world have placed the highest cryptocurrencies with a competitive pay scale.
However, things are different now because there is news about crypto exchanges firing employees every week. Only a handful of crypto exchanges are currently renting despite the acidic market conditions. Read here to know which companies rent during this ‘crypto winter’.