Melbourne-Based Crypto Operator Banxa Announces 30% Staff Layoff Due To Crypto Winter
- Banxa lays off staff to survive crypto winter and focus on improving margins. Since last year, Banxa has been publicly traded on the Toronto stock exchange’s early-stage TSX venture exchange.
The CEO of global Web3 payments firm Banxa Holdings Inc. (Canada TSX Venture: BNXA), Holger Arians believes that the current crypto market downturn will last for the next 12 months. Hence, the company has announced a 30 percent reduction in its workforce to prepare ahead.
“Banxa must take decisive actions to reduce costs now, or else our company won’t be able to succeed over the long run,” Banxa CEO Holger Arians said.
As a Web3 on-and-off ramp solution provider, Banxa enables the conversion of crypto assets such as NFTs and digital currencies to fiat and vice versa. Since last year, Banxa has been publicly traded on the Toronto stock exchange’s early-stage TSX venture exchange.
Notably, the company is backed by key venture capitals including Alium Capital (a Sydney-based fund manager) and the Thorney Investment Group led by Alex Waislitz.
Banxa and the Market Outlook
Last year, Banxa expanded its workforce to over 220 worldwide, with some of them in Europe and Indonesia. Last month, the company introduced cost-cutting measures such as canceling internal events like drinks and dinners.
Last Wednesday, Arians called all staff members to a crucial meeting where he told them the company was starting a restructuring plan. His reason for the restructuring plan was that the company had grown too fast, and market conditions continued to worsen by the day.
The company is sending home 70 of its employees, thereby bringing its staff to 160 globally. Ahead, the company expects to focus on its operations, particularly in the Philippines and Australian markets.
In addition, Jan Lorenc (Banxa’s European managing director) would leave his position. Lorenc was responsible for Banxa’s expansion into the European markets. A company representative told the media that the staff reduction would make the company more focused. It will prioritize higher margins and profits to survive the current market conditions.
The spokesman added that creators and platforms in Web2 and Web3 are getting massive value from Banxa’s comprehensive payment options and infrastructure. He further said the company could cope with the current market condition as it has survived various industry cycles in the past. “The company has a strong balance sheet, and any interested person can view its financial performance. It is available publicly.”
According to market data provided by MarketWatch, BNXA shares are down approximately 68 percent in the past year. Additionally, the company’s stock market has recorded a decline of 66 percent YTD.
A Rising Trend
Banxa’s staff reduction adds to the rising number of Australia-based crypto and tech start-up firms cutting down their workforce. Various crypto firms have employed similar steps in the global crypto space. Earlier this month, the popular crypto exchange, Coinbase, reduced its staff strength by nearly 20 percent.
Also, BlockFi, Gemini exchange, and Crypto.com recently laid off some of their staff. Last week, two notable Australia-based tech firms, Brighter and Simon Holmes announced a reduction in their staff. Brighte reduced its staff by 15% while Simon holmes reduced theirs by 25 percent.
Even though Banxa is based in Australia, it was listed on Canada’s stock exchange for $C1 at the beginning of last year. The company planned to maintain a ‘high enough’ share price via this listing. Thus, it can hasten its IPO on the Nasdaq. But the company has failed to achieve this goal due to worsening market conditions.