Fintech/News/ Crypto trading platform Bitpanda cuts headcount by a third Bitpanda’s cofounders announced the layoffs to employees in a company-wide call, admitting they’d made a ‘mistake’ and overhired By Amy O'Brien 24 June 2022 Bitpanda Bitpanda \Fintech Could digital CFO tools be the way ahead for financial management in startups? By Aruni Sunil 23 March 2023 Fintech/News/ Crypto trading platform Bitpanda cuts headcount by a third Bitpanda’s cofounders announced the layoffs to employees in a company-wide call, admitting they’d made a ‘mistake’ and overhired By Amy O'Brien 24 June 2022 Austrian crypto trading platform Bitpanda is laying off a third of its employees, as its cofounders seek to extend the company’s runway to weather the current crypto winter. Bitpanda’s cofounders announced the layoffs to staff in an all-hands meeting this afternoon, confirming in a blog post afterwards that the company’s 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,” Bitpanda’s three cofounders Eric Demuth, Paul Klanschek and Christian Trummer wrote in the blog post to staff. “In keeping up with the industry, our team’s growth rate has been too high […] We reached a point where more people joining didn’t make us more effective, but created coordination overheads instead, particularly in this new market reality. “Looking back now, we realise 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, prioritising safety and compliance, user experience, education and community, while deprioritising 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 don’t really matter”. “When it comes to Bitpanda, we’re unusual in that we’ve 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 O’Brien is Sifted’s fintech reporter. She authors Sifted’s fintech newsletter and tweets from @Amy_EOBrien. Related Articles Neobanks latest ploy involves *ultra* cheap insurance By Isabel Woodford Click here to read more Insurtech in 2023: Where the sector’s going and why it’s ripe for expansion Sponsored by Prima Click here to read more Claimer raises $4.2m to help startups claim tax credits ‘in 10 minutes’ By Zosia Wanat Click here to read more Monzo revenues surge more than twofold, putting it on track for 2023 profitability By Amy O'Brien Click here to read more Most Read 1 \Startup Life UK government to reform ‘equity for visas’ residency application system 2 \Fintech Is Revolut really worth $33bn right now? 3 \Startup Life Techstars unexpectedly pulls out of Sweden mid-programme 4 \Deeptech The other funding gap: it’s not just unicorns that are leaving Europe 5 \Deeptech ‘There’s going to be a bloodbath’ — is generative AI a bubble?