Bybit is the latest crypto exchange to consider layoffs amid a crippling crypto crash, reports suggested on Monday.
CEO Ben Zhou issued an internal letter to Bybit employees explaining that the exchange was considering layoffs starting this week. The news was reported by crypto reporter Colin Wu, citing multiple inside sources.
Bybit is far from the first crypto exchange to outline job cuts amid the ongoing crash. Its bigger rival Coinbase recently cut 18% of all roles, after it earlier announced a hiring freeze. Coinbase also logged a massive loss in the first quarter.
The cuts come amid one of the worst crypto downturns in recent history. The space has lost nearly $2 trillion in valuation since reaching a peak in late-2021.
Bybit grew too quickly too fast
In Zhou’s letter, revealed by Wu, the Bybit CEO says that while the exchange saw exponential growth in size over the past two years, its business did not grow at a similar scale.
The exchange is reportedly facing problems stemming from internal inefficiencies. The exchange will now look at streamlining internal functions, which is likely to results in cut positions.
A Chinese media report estimates the level of cutoffs to be between 20% to 30% of Bybit’s total headcount. It also estimates that the exchange currently employs over 2500 people.
Bybit is the 19th largest crypto exchange, with daily volumes of about $505 million, according to data from Coinmarketcap.com.
Crypto exchanges see a string of job cuts
Apart from Bybit and Coinbase, several other major exchanges have also begun trimming positions to reduce costs.
Gemini, which is headed by the Winklevoss brothers, recently cut 10% of its headcount. Crypto.com cut 5% of its workforce, while crypto lender BlockFi also slashed 20% of all roles. The latter has also been impacted by a slew of regulatory crackdowns this year.
On the other hand, major exchanges Binance and Kraken have both opened more roles, citing operational strength despite a market crash.