Crypto trading platform Bitpanda cuts headcount by a third

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Austrian crypto trading platform Bitpanda is laying off a third of its employees, as its cofounders seek to extend the companys runway to weather the current crypto winter.

Bitpandas cofounders announced the layoffs to staff in an all-hands meeting this afternoon, confirming in a blog post afterwards that the companys headcount will be reduced to 730 people.

Sifted understands that those layoffs represent 34% of all employees (current headcount is around 1,100).

As a hypergrowth company we were experiencing growing pains, Bitpandas three cofounders Eric Demuth, Paul Klanschek and Christian Trummer wrote in the blog post to staff. In keeping up with the industry, our teams growth rate has been too high […] We reached a point where more people joining didnt make us more effective, but created coordination overheads instead, particularly in this new market reality.

Looking back now, we realize that our hiring speed was not sustainable. That was a mistake.

“We need to make fundamental changes in how we operate and sharpen our focus by getting back to the basics, prioritizing safety and compliance, user experience, education and community, while deprioritizing everything else.

A fast fall for Bitpanda

It comes after Bitpanda raised $263m last August in a Series C round that valued the company at $4.1bn, and launched an aggressive expansion into new markets. Given that crypto assets have lost more than $1tn in market value this year, its valuation is likely a fraction of that now.

In an interview just last month, co-CEO and cofounder Eric Demuth told Sifted he was totally relaxed about the current slump in crypto markets, and that long-term, times like this dont really matter.

When it comes to Bitpanda, were unusual in that weve always been profitable every year since we launched in 2014, Demuth told Sifted. So we have a good cash reserve if this crypto winter continues for much longer we have no concerns there.

What happens next

Sifted understands that most employees will receive an email today letting them know if the layoffs affect their role apart from in Germany and Spain, where legal restrictions mean staff may not find out until after the weekend.

Amy OBrien is Sifteds fintech reporter. She authors Sifteds fintech newsletter and tweets from@Amy_EOBrien.

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