In an effort to “get out of it financially healthy” in the midst of an unforgiving bear market, Austrian cryptocurrency and stock trading platform Bitpanda has joined the growing list of businesses to announce a mass layoff.

The bear market has caused multiple catastrophic consequences for many ecosystems over the last few weeks, including the de-pegging scandal involving Terra (LUNA) and Abracadabra’s Magic Internet Money (MIM).

Bitpanda, which was directly affected by the crashes, made the “difficult decision” to reduce the number of employees it had to about 730.

While the precise number of workers who have been asked to leave Bitpanda is still unknown, data from LinkedIn shows that the company is in the process of firing about 277 full-time and part-time workers.

While the precise number of workers who have been asked to leave Bitpanda is still unknown, data from LinkedIn shows that the company is in the process of firing about 277 full-time and part-time workers.

In the statement titled “The Way Forward,” Bitpanda backed the decision to reduce staff by emphasizing the necessity of being “robustly well-capitalized” in view of the hazy economic climate, stating:

We are certain that the new organizational design will help us be more focused, successful, and stronger as a firm. It is a difficult but essential decision.

The business provides itex-employees with support packages that include references, mental health aid, and an employee assistance program (EAP). When discussing its hypergrowth era, a period when the market capitalization of cryptocurrencies exceeded $2 trillion, Bitpanda disclosed issues with internal systems and infrastructure that made it difficult to successfully onboard new employees:

“We reached a point when adding more members didn’t increase our effectiveness but instead increased coordination costs, especially given the current state of the industry. We now understand that our hiring pace was unsustainable. That was a bad move.
Requests for comment from Bitpanda have not yet been answered.

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