Bitpanda strokes almost 30 % of the workforce, citing the risk of recession
Bitpanda strokes almost 30 % of the workforce, citing the risk of recession
- "Nobody knows when the market mood will change," Bitpanda told the employees
- The company admitted to having problems with the pace of the crypto industry
Bitpanda releases about a third of his workforce because the company tries to navigate through a time of turbulent markets and uncertainty.
The cryptocurrency exchange supported by Peter Thiel said in a that it wants to dismantle its number of employees from more than 1,000 to 730 and referred to the necessity To improve the effects of an expected recession.
"In the past few months, the market mood has changed dramatically, heated by geopolitical tensions, increasing inflation and worried about the upcoming recession," said Bitpanda in the letter.
"There is currently great uncertainty on the financial markets, and although we know that the industry is cyclical, nobody knows when the market mood will change."
Bitpanda admitted to being faced with challenges in order to keep up with the growth of the crypto industry. The company also said that it has withdrawn new offers because the positions for which it had previously stopped are no longer available. It is now planning to concentrate on security and compliance, user experience, education and community.
"Move Fast and Break Things" was the motto of many companies that wanted to adapt [in] in the web3 area, Sheraz Ahmed, Managing Partner at Storm Partners, told Blockworks. "Now we cannot be surprised if the latter happens according to the former," he said.
The company based in Vienna joins a number of other crypto companies that try to reduce costs by reducing personnel. Coinbase, one of the best -known stock exchanges, recently said that it would reduce 1,100 jobs due to the expectation of a recession. Vauld, Blockfi, Crypto.com, Gemini, Bitmex, Buenbit and Bitso have all recently announced layoffs in one of the most difficult times for the industry.
record inflation and shortage of raw material due to the Russian war in Ukraine have presented production worldwide. David Malpass, head of the World Bank, said on Sunday that some countries would find it especially Avoid .
economists from Goldman Sachs see an increased risk of US recession. In a Research Note on June 22, the bank said that it now estimates a probability of 30 % that the US economy will enter a recession next year, compared to 15 % before. In addition, it sees a conditional probability of 25 % for a recession in the second year when one is avoided in the first year.
Bitpanda last collected $ 263 million in a series-C round in a series-C round with an assessment of $ 4.1 billion. The company said it was the first company based in Austria to exceeded the valuation brand of one billion dollars.
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The contribution Bitpanda to Slash almost 30% of workforce, citing recession threat is not a financial advice.