The harsh conditions in the global market at the moment have spread to Australia with Banxa, a crypto payments processing platform the next in line to cut its workforce. With a reduction from 230 to about 160, the exchange noted that it grew too rapidly and it has to make this decision to align with general market sentiments at this time.
“Banxa must take decisive actions to reduce costs now, or else our company won’t be able to succeed over the long run,” said chief executive Holger Arians. “While we have made a number of budget cuts, our employee costs remain too high for us to be able to continue to operate in our current structure … we had hoped to make gradual adjustments to Banxa’s business, but macro conditions accelerated our timeline.”
Banxa and the Need to Prune Costs
Banxa acts as an off-and-on ramp and its growing business strides have pushed it among the listed companies on the Toronto Stock Exchange (TSX). The move to trim down its workforce is just one of the measures it decided to take in order to cut down costs. It has also stopped expensive internal events such as dinners and drinks.
The crypto payments processing firm said all of its decisions, as hard as they may be to those involved is a move to protect the firm against what might be a long-term crypto winter.
“We are now entering what looks like a bear market, while it appears that the US could be entering a recession. Like many others in our industry [we] are anticipating another crypto winter, with trading volumes declining significantly. We saw Banxa’s market capitalisation nearly halve in a matter of days, and the forecast is that these conditions will most likely continue for another 12 months,” Arian added.
The move to reduce its workforce is not just peculiar to Banxa. A whole lot more crypto-linked firms are also retrenching their staff. So far, Coinbase has trimmed its workforce by 18% and Gemini has done the same by 10%, with other exchanges like Bybit and Bitget have also made such a move.