The Australia crypto payments operator Banxa joins crypto exchanges like Bybit and Vauld in slashing 30% of its staff amid a worsening crypto winter, Decrypt reports.
The move will see Banxa decrease staff from 260 people today to 160, with 70 people ultimately affected by the downsizing.
"Banxa must take decisive actions to reduce costs now, or else our company won't be able to succeed over the long run," warned Banxa CEO Holger Arians in a message to staff.
"As a leaner, more focused company, Banxa can better prioritize higher margins and profitability in the face of industry headwinds," the company said. "Banxa’s extensive payment rails and compliance infrastructure is increasingly valuable to creators and platforms in web2 and web3. Banxa is also a veteran company of multiple industry cycles, its financial performance is available to the public, and its balance sheet is strong.”
The crypto payments operator blamed declining trading volumes and pointed out its hyper-growth model over the previous 18 months was no longer sustainable. "Our employee costs remain too high for us to be able to continue to operate in our current structure," said Arians.
“We were working to manage large trading volumes and investing in new products and new markets to support our partners. With the sudden economic downturn, we’ve had to very quickly manage costs and reduce our focus to core, revenue-generating initiatives,” Arians added.
The Melbourne-based crypto firm said it had fears of a looming recession and saw its market capitalization "nearly halve in a matter of days."
It's only the latest company using the crypto winter to lay off staff, following in the wake of Coinbase slashing nearly a fifth of its workforce, Crypto.com and BitOasis reducing their headcount by 5%, Robinhood, Bitso, and Gemini by 10%, BlockFi by 20% and BitMex by 25%.
Earlier this month, Banxa had launched the option to use the service for crypto in Turkey through local bank transfer. In 2021, Banxa listed on the Canadian stock exchange and was reportedly eying an IPO on the Nasdaq, which the ongoing bear market has now delayed.