Bybit To Lay Off Employees Due To Inflation And Market Volatility

Bybit, one of the most renowned crypto exchanges, is planning to lay off multiple employees due to the current bearish market. The firm issued an internal letter regarding the layoffs but nothing has been officially confirmed yet.

The news was first reported by Colin Wu, one of the most notable reporters in the crypto space, via the official Twitter handle, WuBlockchain. Citing multiple sources, Wu revealed that "the organization size had grown exponentially but the overall business growth did not grow in the same."

"I am exploring a way to help Bybit by removing overlapping functions and building smaller but more agile teams to improve our efficiency. Starting from this week some of the functions and roles will be reviewed for combination or adjustment," said Ben Zhou, the co-founder, and CEO of Bybit.

In the internal letter, the CEO said that the substantial increase in inflation and a significant drop in customer spending are major reasons why the firm is considering laying off employees. He added that the firm grew 300% since the start of 2020.

"We grew too fast in this period but also grew too comfortable I am afraid," he said.

The proportion of layoffs is expected between 20% and 30% with some partial layoffs as high as 50%, according to Wu. The crypto exchange grew from a team of hundreds to 2,000 in two years, he added.

Bybit is not the only cryptocurrency exchange to cut off employees. Recently, Brian Armstrong, the CEO of Coinbase - the biggest crypto exchange in the United States - said that the firm plans to reduce its size by about 18% due to worsening economic conditions, high inflation levels, and quick growth of the company.

Cameron and Tyler Winklevoss, billionaire bitcoiners and founders of the Gemini crypto exchange, also announced plans of laying off 10% of its employees.