Banxa announced on June 27 that it is laying off 30 percent of its staff, Australian Financial Review reported. The cryptocurrency operator said in the release that the layoffs add to several measures to cushion the effects of the crypto winter.
The company said it now has a “clear line to profitability” owing to the cost-saving initiatives it activated, one of which is the recently announced layoffs. It added that the cost-saving plans would ensure a more robust roadmap for its long-term success.
Taking “decisive actions.”
Holger Arians, Banxa’s CEO, said in a letter to employees, “Banxa must take decisive actions to reduce costs now, or else our company won’t be able to succeed over the long run.”
As per the release, the company said it would downside its E.U. operations and its executive team on the continent. Consequently, Banxa’s European Managing Director, Jan Lorenc, will exit the company.
The company noted that its priority is increasing its profitability, which includes directing its focus to higher-margin revenue streams. Therefore, the cost-saving initiatives would help it save over $10 million per year.
Further, the company said it would expand its Sell (offramp) feature to support more coins and chains, enhance its API to allow for faster and more efficient onboarding of partners, and increase local payments in Key American, European, and APAC markets.
In a statement to investors, CEO Holger Arians called the moves “measures of a responsible management.” He said: