Australian cryptocurrency payments processing firm Banxa Holdings has disclosed its plans to retrench almost a third of its staff, making the headlines as one of the platforms to explore this route in its cost-cutting mission.
Just like its counterparts in the United States and worldwide, the recent plummeting activities in the digital currency ecosystem are negatively affecting Banxa. In light of these realities, Chief Executive Officer Holger Arians said the move to retrench is the best way the company can chart a sustainable way out of the current economic turmoil plaguing the entire world.
“Banxa must take decisive actions to reduce costs now, or else our company won’t be able to succeed over the long run,” he wrote, adding that “While we have made a number of budget cuts, our employee costs remain too high for us to be able to continue to operate in our current structure … we had hoped to make gradual adjustments to Banxa’s business, but macro conditions accelerated our timeline.
According to Holger, the current economic conditions have “put even more pressure on Banxa’s leadership team to make necessary changes to our company’s cost structure.”
While Banxa has obligations to a broader range of investors as it is publicly traded on the Toronto Stock Exchange (TSX), Holger will at least be able to present a remedy to salvage costs seeing how fast the firm’s shares have been plummeting in recent times.
Banxa is processing digital currency-related payments for platforms in the Web3.0 world. The firm confirmed that its role is becoming more relevant by the day and that it needs to concentrate its resources on what truly matters. This position is exactly what Coinbase, Gemini, and Bybit identified as the primary reasons why they have also initiated employee cut-offs as preparation is made for the crypto winter many are predicting may be well drawn out.
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