Contributing to the growing list of companies trimming off employees, crypto payment gateway Banxa has reportedly decided to reduce its workforce by more than 30%.
Banxa lays off 30% of its staff
According to a recent report by The Australian Financial Review, Banxa has decided to reduce its staff by 30%. The company’s common shares started trading on the Toronto Stock Exchange in January 2022. The shares, trading under the ticker TSX, initially resulted in a massive 90% upward motion but soon fell to over 70% from their all-time high amid the adverse market meltdown.
Banxa is a crypto payments operator. It describes itself as a web3 on-and-off ramp solution, enabling users to convert fiat currencies to digital currencies such as cryptocurrencies and NFTs, and vice versa. In May, Banxa reported a 99% increase in year-over-year (YoY) revenue.
Notably, Holger Arians, the CEO of the Melbourne-based Banxa, reportedly predicted that the “crypto winter” would last for another year. The company has been hit by the dramatic fall in the market, which made 100 employees in the company redundant. Last year, it expanded its staff by 250 employees. However, Arians now admits that the company over hired. According to him, the “painful changes” are necessary to survive the crypto market meltdown.
A streak of downsizing in the crypto market
Banxa is not the only crypto company that has decided to downsize the company during the ongoing market slump. Before this, crypto exchange platforms like Coinbase have also announced similar decisions to trim their staff. Coinbase started by halting its hiring process and announced a reduction in staff by 18%.
In contrast, exchanges like Binance and OKX are determined to use the ongoing downfall as an advantage to expand themselves. As we reported, OKX released a “quick update” with its community recently, revealing its plans to expand its staff by 30% by the end of the year.