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Bitpanda to make payroll cuts
Having seen the disastrous market in recent weeks from the hot seat, Bitpanda, the Austrian-based cryptocurrency exchange , announced it is reducing its headcount to 730.
Over the past few weeks, the Bear market has negatively affected many ecosystems, typically the failure to lose the price anchor mark – depegging – of Terra's (LUNA) and Abracadabra's Magic Internet Money (MIM). Bitpanda made the difficult decision to cut the number of employees to ensure sustainability.
Although the exact number of employees who had to stop working at Bitpanda has not been disclosed. However, data from LinkedIn shows that the company is in the process of laying off about 277 full- and part-time employees. Bitpanda said it is targeting a target staff of 730 — from the current figure of more than 1,000.
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Will bitpanda still work well in the face of the layoffs of the human moon?
Bitpanda's founders said the company needed to lay off employees when the size of its operations declined due to market conditions.
In its "The Way Forward" announcement, Bitpanda backed the move to cut staff by stressing the need to be "strongly capitalized" amid market uncertainty, stating:
"It was a difficult, but necessary decision, and we are confident that the new organizational design will help us be more focused, more efficient and stronger as a company."
Bitpanda argues that the company has grown too fast, just because it wants to catch up with the industry:
"We have reached the limit, more personnel do not make the work more efficient, but instead create coordinated costs, especially in this new market practice. Looking back now, we realize that our hiring rate is unsustainable. That was a mistake.""
Bitpanda supports workers
In addition, recent offers will be withdrawn and notifications have been sent to all employees.
Bitpanda's layoffs come as cryptocurrency platforms and technology companies cut staff numbers in an effort to survive a market downturn and a period of rising exchange rates. Bitpanda will also refer employees to other employers, take care of mental health as well as support many other programs.
"We acknowledge our responsibility to our employees and their families. This is why our top priority is to support them to make a smooth transition to the next step in their career."
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