Crypto exchange Swyftx cuts 74 staff amid warnings of an 'extended period of economic uncertainty'

Brisbane cryptocurrency exchange Swyftx has laid off 74 staff in the wake of its merger with share trading platform Superhero in June.

Co-CEOs Alex Harper and Ryan Parsons broke the news to the a 320 team at a “townhall” meeting on Wednesday saying that they’d decided to reduce the site of the business in the face of global economic headwinds.

The job losses represent 21% of the existing workforce, which is being reduced to around 250.

Co-founded in 2018 by Harper and Angus Goldman, Swyftx has more than 600,000 retail and corporate investors in Australian and New Zealand, offering access to more than 320 digital currencies.

In a note to its “Swyftxers”, as the fintech calls its employees, Harper and Ryan said the decision was “a last resort” after “a period of quite extraordinary growth”.

“As you’re all aware, we are operating in an uncertain business environment, with levels of domestic inflation not seen in over two decades, rising interest rates, highly volatile markets across all asset classes, and the potential for a global recession,” they wrote.

“We started growing our team in a very different world and it’s now prudent to make sure our cost base is compatible with this extended period of economic uncertainty.”

Staff members losing their jobs are being told today about their fate.

Like some other startups with employee share schemes who’ve made staff redundant, Swyftfx is removing any minimum service requirement for employee access to its ESOP and is accelerating a period of vesting.

“It’s a hard decision to say goodbye to 21% of our team,” the co-CEOS told their staff.

“It is our shared responsibility to continue to drive this business forward and support each other as a 250-plus strong team. Together, we will not lose focus on building towards our vision.”

In June, Superhero and Swyftx announced their merger to create a four-year-old fintech startup valued at $1.5 billion with 800,000 investors.

The two fintechs continue to operate as separate brands and platforms while offering both services to all users in what they describe as create “the country’s first digital and traditional finance powerhouse”, trading in cryptocurrencies, equities and superannuation.In February this year, Swyftx announcing it was sponsoring the NRL State of Origin in a three-year deal that kicked off with the 2022 series.