Swyftx cuts 40% of staff as it braces against 'worst-case scenario'
Australian-based crypto exchange Swyftx has laid off a total of 90 staff members, which it said was in preparation for a “worst-case scenario” caused by the fallout of FTX and a potential fall in global trading volumes next year.
The news was shared by Swyftx co-CEO Alex Harper in a Dec. 5 statement, noting that despite not having any exposure to FTX, the company was “not immune” to the fallout over the bankrupt exchange, adding:
A Swyftx spokesperson told Cointelegraph that the 40% staff cut was also in anticipation of a fall in trading volumes, despite these figures increasing in November.
“We have let go of staff in expectation of a potentially sharp fall in global trade volumes in the first half of 2023 and further aftershocks from FTX’s collapse," said the spokesperson.
Harper in the statement said the tough decision was necessary in order to get through the prolonged crypto winter:
The Swyftx spokesperson reiterated that the company’s balance sheet remained intact despite it being indirectly affected by the FTX collapse, adding:
Harper also revealed that his company would become more risk-averse in its business decisions and that the staff cuts would ease operational costs on its balance sheet.
“Swyftx maintains strong revenue but we’re not willing to take any risks post-FTX and are being exceptionally cautious about costs next year,” added the spokesperson, who also noted that priority areas like security, compliance and customer support services wouldn’t be affected.
As for who was laid off, a Swyftx spokesperson told Cointelegraph that the firm’s research and development team was most affected by the staff cuts.
Related: AAX clients storm exchange's office in Lagos following operations halt
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