U.S.-based digital currency exchange Bittrex has terminated 83 employees in a bid to remain afloat amid macroeconomic conditions. The exchange blamed the multiple collapses of centralized entities in the digital currency space as a reason for the job cuts.
The announcement came to light via the U.S. Employment Security Department’s (ESD) layoff alert, which mandates companies with over 100 employees to notify affected individuals 60 days prior to the layoffs. A copy of an internal email from the firm’s leadership revealed that the exchange had been dealing with several financial difficulties in the wake of shocking industry collapses.
“As all of you know, the Leadership Team has been working aggressively for the last several months to reduce expenses and increase efficiencies. Unfortunately, our efforts have not produced the results necessary to ensure the long-term viability of Bittrex,” the internal email read.
BREAKING: Bittrex begins layoffs today citing macroeconomic market conditions. pic.twitter.com/8cK2sdcENf
— Autism Capital 🧩 (@AutismCapital) February 1, 2023
The email blamed the challenges on macroeconomic conditions on a global scale and a virtual currency market downturn caused by the collapse of FTX, Celsius, and Three Arrows Capital (3AC).
The terminations are expected to take effect on April 2 in line with the regulatory guidelines, according to the ESD’s Worker Adjustment and Retraining Notification (WARN). The layoffs will leave Bittrex with a staff strength of around 200 individuals as the exchange looks to operate on a lean budget.
Aside from dealing with a tumbling market, Bittrex also had to juggle a regulatory dilemma after the U.S. Treasury Department fined it $29 million for allowing individuals from sanctioned regions access the platform.
Founded in 2014 by the trio of Richie Lai, Rami Kawach, and Bill Shihara, Bittrex rose in popularity to have over 500,000 active users with a 24-hour trade volume of $19 million.
Carnage in the Web3 job markets
The virtual currency job market is undergoing a frigid period inundated by multiple reports of layoffs. Since the year began, over 3,000 individuals have been laid off from digital exchange firms, with the trend looking like it is set to continue into the foreseeable future.
U.S.-based Coinbase (NASDAQ: COIN) was the biggest casualty of the layoffs as it announced job cuts for 950 individuals as Crypto.com and Huobi terminated the contracts of 20% of their staff.
Other firms that have announced similar job cuts in the industry include Prime Trust, virtual asset conglomerate Digital Currency Group and Silver Bank. Cumulatively, the three entities laid off over 700 persons in January as enthusiasts brace for a challenging year ahead.
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