Bitpanda declared no big layoffs three weeks before firing one-third of workers
Lukas Enzersdorfer-Konrad, the chief product officer of Bitpanda informed workers through Slack that there would be no mass layoffs weeks before the business reduced its employment by a third.
Three weeks before a massive layoff, the cryptocurrency and commodities trading platform Bitpanda informed its staff that it will not engage in mass layoffs due to the economic crisis.
According to a May 31 Slack snapshot acquired by The Block, the chief product officer of the firm, Lukas Enzersdorfer-Konrad, attempted to refute reports that the company will reduce and stop recruiting.
Enzersdorfer-Konrad said that there would be no large-scale layoffs at Bitpanda. We will continue to hire until all of our open jobs are filled since we have not yet achieved our capacity.
He said that the firm was “extremely well capitalised” and had no liquidity issues. While noting that the company’s financial performance for 2022 was “behind budget,” he explained that this was due to macroeconomic factors, such as a supply issue and the Ukraine war. In preparation for the “next bull run,” the CEO advised staff to prioritise product and technological infrastructure enhancements.
When contacted for a response today, a corporate spokeswoman said, “Three weeks prior to the announcement, we had no plans to restructure, and we have always been upfront with our employees about our intentions.” He said, “We only made this difficult choice days before the public release when legal limits prevented us from discussing it openly.” Bitpanda said that it was doing everything possible to assist anyone impacted by the restructuring.
Since reducing its employees by a third and rescinding job offers last Friday, Bitpanda is not presently advertising any open positions on its careers website. The firm said in a statement that it had taken a choice required for escaping the present market crisis. The corporation acknowledged that it may have developed too rapidly after committing to a “hyper-growth” plan.
August of last year, the firm collected $263 million to fuel its ambition for rapid expansion as it sought to recruit top people and expand its product portfolio. This includes the hire of a JP Morgan executive to oversee its institutional platform, the completion of its first acquisition in February of this year, and the introduction of new products such as its Bitcoin-backed ETN.
Bitpanda is not the only business affected by market volatility. The Block revealed a week ago that the cryptocurrency trading platforms Abra and OSL had eliminated positions. More than 1,500 individuals were laid off by cryptocurrency startups like Coinbase, Crypto.com, and Gemini in the last month.