Cryptocurrency exchange Bybit is planning to reduce its headcount after rising inflation and lower consumer spending drove crypto into a bear market and prompted firms across the industry to seek ways of cutting costs.
Job cuts might amount to about 30% of the workforce, according to crypto journalist Colin Wu, who cited unidentified sources. The Dubai-based firm has a headcount of around 2,000.
Bybit joins fellow crypto firms in cutting jobs. Coinbase (COIN) said last week it was laying off 1,100 employees –around 18% of its workforce – while crypto lender BlockFi said it would reduce its headcount by more than 170 – roughly 20%. Crypto.com said it would cut about 5% of its workforce, amounting to around 260 employees.
"We are exploring a way to remove overlapping functions and build smaller but more agile teams to improve our efficiency," a Bybit spokesperson told CoinDesk. "Starting from this week, some of the functions and roles will be reviewed to ensure we stay focused and agile."
According to a copy of an internal letter posted by Wu, Bybit CEO Ben Zhou said the firm "grew so fast" during the most recent crypto bull market, and "grew too comfortable."
"Our organization size grew exponentially but the overall business growth did not grow in the same way," Zhou said.
CORRECTION (June 28, 08:48 UTC): Corrects number of jobs cut at BlockFi in third paragraph to 170 from 400.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.