Singapore-based crypto exchange Bybit has joined a long list of companies that have laid off some of their employees. As the cryptocurrency market is facing tremulous times, firms are finding new ways to cut costs and stay afloat.
Crypto journalist James Wu first noted the news about Bybit's layoffs yesterday. He said that the company is cutting a whopping 30% of its 2,000 people workforce.
"Bybit is highly dependent on professionalism and rapid execution capabilities. We are exploring a way to remove overlapping functions and build smaller but more agile teams to improve our efficiency. Starting from this week, some of the functions and roles will be reviewed to ensure we stay focused and agile," the company said in a statement.
"To support the smooth transition of the process, affected colleagues will be accorded a severance package and access to Bybit’s employee career support in their job transition."
Bybit said it has 6 million registered users with more than 190,000 users, who are trading futures or spots on the exchange daily. The firm had spent heavy money on marketing over the last year, including a sponsorship deal with F1 team Red Bull Racing, reportedly worth $150 million.
Last week, Coinbase said that it's cutting its workforce by 18% — almost 1,100 people. Crypto.com CEO Kris also said the company is laying off 5% (260 people) of its staff. Lending platform BlockFi was another firm that aims to save costs by giving a pink slip to 20% (850 people) of its employees.
The Crypto market is currently facing a "winter" as prices of different tokens and coins have plummeted. Over the weekend, Bitcoin dipped below $19,000 and Ether dipped below $1,000, only to recover during the last few days. Several crypto financial service providers like Celcius and Babel Finance have frozen withdrawals as they are trying to battle the downturn in the market.
In an interview with NPR over the weekend, crypto exchange FTX's founder and CEO, Sam Bankman-Fried, said that increase in interest rates by Fed is driving this crypto bear market.