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Joining the long list of companies undergoing a workforce reduction, Bybit recently announced that they’ll be cutting off a massive 30% of their workforce- a team of about 2,000 people.
Bybit To Cut Staff By 600 People Amidst Market Concerns
Ben Zhou, CEO and co-founder of Bybit, recently announced in a Twitter thread that the company will be laying off 30% of their people due to the continued crypto winter:
1) Difficult decision made today, but tough times demand tough decisions. I have just announced plans to reduce our workforce as part of an ongoing re-organisation of the business as we move to refocus our efforts for the deepening bear market.
— Ben Zhou (@benbybit) December 4, 2022
This decision is a part of a reorganization strategy, expected to better align the focus and efforts among the current team. These reductions will be made across the board and will be carried out in a way to ensure smooth business operation. Along with this, the assets of clients will also be kept safe as this move progresses.
“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,” a spokesperson from Bybit said in a statement.
The CEO said that we’re entering into an even colder winter than the team had anticipated and thus the company has no choice but to reduce its workforce to continue operations.
Elaborating further on the matter, the CEO said: “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.”
As the company progresses from here, it will continue to invest in strategic web3 projects and acquisitions, while continuing to sponsor non-profit organizations as they realign their business priorities and manage their expansion plans.
Bybit is the 8th most popular crypto exchange according to trading volume and claims to have over 6 million registered users and about 200k users who trade futures and spots on a daily basis. The company also spends heavily on marketing such as the sponsorship deal with the RedBull F1 racing team last year- estimated to be worth $150 million.
The crypto market has been undergoing a “winter” for the better part of this year and has managed to cause a lot of panic among investors and industry players. Bitcoin, for example, started the year with over $45k while it’s currently trading at $17k, down by more than 60% over this year.
Bybit is Not Alone In Downsizing
The downfall of the market has caused a lot of companies to lay off their employees this year. Coinbase, among the many, reduced their workforce by roughly 20%, while Gemini dropped 10% of their workforce, citing “turbulent market conditions” as the reason for the reduction. However, this reduction was much smaller than the one by Bybit.
Crypto.com, too, has laid off 260 people from their staff. Bybit, a lending platform, was yet another company to reduce its staff size by 20%.
The crypto market that has triggered all these actions has been a result of an increase in interest rates, as per Sam Backman-Fried, CEO and founder of FTX.
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