Bitpanda, a Vienna-based crypto exchange, is the latest to be bitten by the so-called Crypto Winter. The Austrian company has announced plans to reduce its staff of 1,000 employees to 730.
In a blog post, Bitpanda said it’s a tough decision but necessary to make sure that the company is robustly well-capitalized to navigate the storm and get out of it financially healthy. No matter how long it takes for the crypto market to recover, Bitpanda will not compromise on its product quality and customer experience.
Bitpanda highlighted that the market sentiment has dramatically changed over the past few months. It has been driven by geopolitical tensions, rising inflation, and concerns about the imminence of a recession. As such, the crypto exchange has recognized the uncertainty in the financial markets. It also acknowledged that the industry is cyclical and nobody knows when the market sentiment will change.
The company said it has been keeping up with the industry. The team’s growth rate has been too high, as such, Bitpanda reached a point where more people joining didn’t make the company more effective. Instead, it created coordination overheads, particularly in this new market reality. The founder of Bitpanda outlined that cost management is essential and fundamental operational changes are necessary.
Changes include prioritizing safety and compliance, user experience, education, and community, as well as deprioritizing everything else. For employees who its letting go, Bitpand will help them find new employment, and provide references and mental health support.