Bybit joins growing list of layoffs in exchanges

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Bybit, one of the world’s largest digital asset derivatives exchanges, has announced layoffs, joining other titans like Coinbase (NASDAQ: COIN) and Kraken as the ongoing bear market continues to claim its victims.

Ben Zhou, the founder and CEO of Bybit, announced the layoffs on Twitter, blaming the ‘difficult decision’ on “the deepening bear market.”

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

The downsizing will cut across the board, the CEO added.

Bybit joins some of the largest exchanges in the market, which have been hard hit by the downturn in trading volume as the bear market rages on. The most recent casualty is Kraken which announced last week that it was laying off 30% of its workforce, or 1,100 people, “in order to adapt to current market conditions.” In a blog post announcing the layoffs, CEO Jesse Powell blamed macroeconomic and geopolitical factors for slowing growth and reduced trading volumes.

“We are all saddened by the fact this reorganisation will impact many of our dear Bybuddies and some of our oldest friends. I am very grateful for all of their contributions to Bybit over the years and we will not forget them,” Bybit CEO added.

Bybit, which launched in 2018 and processes over $5 billion in daily trade volume, pledged to work with the laid-off workers to ensure their smooth transition.

“… 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. That way we can continue to deliver the crypto ark to the world with even more drive and passion,” the CEO said.

This is the second round of layoffs at Bybit, with the derivatives exchange having laid off an unknown number of employees in June.

The Singaporean exchange joins Coinbase, which laid off 60 employees in its recruiting and institutional onboarding departments a month ago; NBA Top Shot maker Dapper Labs which shed 22% of its workforce; BitMEX, which cut off 20% of its employees; and Web3 gaming studio Mythical Games which laid off 10% of its workers—all in November.

Follow CoinGeek’s Crypto Crime Cartel series, which delves into the stream of groups—from BitMEX to Binance, Bitcoin.com, Blockstream, ShapeShift, Coinbase, Ripple, Ethereum, FTX and Tether—who have co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) players in the market.