cryptoknowmics.com
Swyftx, an Australian-based cryptocurrency exchange, announced the layoffs of a total of 90 employees in anticipation of the catastrophe that might result from the impact of FTX and a projected decrease in worldwide trading volumes in 2019.
Swyftx Cuts 40% Workforce
Swyftx co-CEO Alex Harper announced the information in a statement on December 5 and noted that although having no exposure to FTX, the firm was not safe from the consequences of the collapse of the exchange. Despite these data increasing in November, a Swyftx spokesman informed the media that the 40% employee reduction was also anticipated to coincide with a decline in trade volumes.
Employee Termination Because of FTX Failure
The representative stated the exchange has let off workers in anticipation of a possibly substantial reduction in global trade volumes during the first half of 2023 and subsequent repercussions from FTX's failure. In the announcement, Harper added that in order to survive the extended cold winter, a difficult choice was required. Despite being tangentially impacted by the FTX collapse, the Swyftx representative emphasized the company's unaffected balance sheet.
Significant Impact on Marketing Team
Harper also disclosed that the personnel reductions would lower operating expenses on the income statement of the firm and would drive it to become more careful in its business decisions. The spokesman continued, Swyftx retains significant profit, but the exchange is not ready to take any chances post-FTX and is being very conservative about expenses next year. According to a Swyftx representative, the company's marketing team was most impacted by the personnel reductions.