Austrian crypto and stock trading platform Bitpanda joins the growing list of companies to announce a mass layoff as it aims to âget out of it financially healthyâ amid an unforgiving bear market.
Over the past several weeks, the bear market resulted in numerous catastrophic outcomes for many ecosystems such as Terraâs (LUNA) and Abracadabraâs Magic Internet Money (MIM) de-pegging fiasco. Witnessing the crashes from a front-row seat, Bitpanda made the âtough decisionâ of cutting down its employee headcount to roughly 730 people.
While the exact number of employees intimated to stop working for Bitpanda remains undisclosed, data from LinkedIn indicates that the company is in the process of laying off approximately 277 full-time and part-time employees.
In the announcement, named âThe Way Forward,â Bitpanda supported the move to cut down employees by highlighting the need to be ârobustly well-capitalizedâ amid uncertain market conditions, stating:
âIt is a tough, but necessary decision and we are confident that the new organizational design will help us be more focused, effective and stronger as a company.â
The company is offering itex-employees support packages which include mental health support, references and an employee assistance program (EAP). Speaking about its hypergrowth phase, a timeline when the crypto market breached the $2 trillion market capitalization, Bitpanda revealed problems with internal processes and infrastructure to successfully onboard new joiners:
âWe reached a point where more people joining didnât make us more effective, but created coordination overheads instead, particularly in this new market reality. Looking back now, we realize that our hiring speed was not sustainable. That was a mistake.â
Bitpanda has not yet responded to Cointelegraphâs request for comment.
Related: Coinbase to shut down Coinbase Pro to merge trading services
Joining the mass reorganization drive to better suit the bear market, American crypto trading firm Coinbase announced the closure of its Coinbase Pro services.
As Cointelegraph reported, Coinbase Proâs services will gradually migrate to Advanced Trade, Coinbaseâs new trading section accessible via the exchangeâs website â over the next several months.