Australian cryptocurrency exchange Swyftx Pty Ltd has cut about 90 jobs or 35% of its total workforce, citing the FTX collapse and a sharp decline in global trading, the company said on Dec. 5. According to a spokesperson, the firm had about 259 employees before the layoffs.
In the announcement, Swyftx co-founder and Chief Executive Officer Alex Harper said the exchange has no direct ties to the crypto giant FTX. He acknowledged it the company was not immune to the widespread fallout from FTX’s bankruptcy. He added:
“We have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during H1 next year and the potential for more black swan-type events.”
Based in Brisbane, Australia, Swyftx was founded in 2019 by Angus Goldman (CTO) and Alex Harper (CEO). Since its establishment, it has become a well-known cryptocurrency exchange with low fees, a feature-rich platform, and good customer support. According to Alex Harper, the crypto exchange has around 630,000 customers.
Harper also said Swyftx had grown rapidly. It was a different world at the start of the year, and company expectations were for at least six months longer of global trade growth. Further, he stated:
“The fact we are now making our costs more consistent with industry standards is, in no way at all, a reflection on our team members. But we understand how difficult this news will be for impacted team members and their families, especially at this time of the year.”
Harper said there is no good way to let team members go, but we do our best to treat everyone with respect. Affected employees will be contacted directly by email for advice, receive severance pay within seven days this week, and get ESOP for tenure plus 6 months.
U.S. crypto exchange Kraken announced last week that it would cut 30% of its workforce. The job cuts come at a time when the industry is grappling with the effects of the FTX collapse and subsequent market downturn. Crypto exchange Bybit announced a 30% reduction in staff on December 4th.
Swyftx has a partnership with the Australian National Rugby League (NRL) that is expected to continue next year, a spokesperson said.