With bitcoin firmly standing below $20,000, it’s visible that the bear market still remains in the spotlight, which harms native businesses.
Miners and exchanges have been hit the hardest. Amid numerous trading platforms laying off staff members, the latest to join this trend is Bybit.
Bybit to Cut Off 30% of Staff
The overall cryptocurrency landscape is significantly different than what it was a year ago when prices were riding high, and there were new ATHs charted frequently. Now, though, the so-called crypto winter is in full force, following adverse macroeconomic events as well as several loud industry-related collapses, such as Terra and FTX.
Somewhat expectedly, the general investor sentiment has changed completely, which is evident from the declining trading volumes, Google searches, etc.
Crypto exchanges are among those suffering the most. Bybit has joined the bandwagon as its CEO Ben Zhou confirmed to Bloomberg that the company plans to lay off 30% of its workforce.
This comes amid an “ongoing reorganization aimed at refocusing efforts, and reductions will be across the board.” Zhou promised that business operations will remain safe while blaming the cut-offs on the continuous bear market.
He believes the most recent troubles around BlockFi, which filed for bankruptcy, and Genesis, which is said to be close to that step as well, are signals that “tell us that we are entering into an even colder winter than we had anticipated from both industry and market perspectives.”
“It’s important to ensure Bybit has the right structure and resources in place to navigate the market slowdown and is nimble enough to seize the many opportunities ahead. Tough times demand tough decisions.” – he added.
Not The First
Bybit is far from being the first crypto exchange to take such drastic measures. CryptoCom and Coinbase were among the first, with reports claiming that the former reduced its staff number by several hundred people. The US giant, on the other hand, cut 18% of its workforce in June.