Bybit announces second round of layoffs in 2022 to survive bear market

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Yes, the bear market eliminates the bad player, but it also forces existing players to rethink their trading strategies to offset the resulting losses. In this effort, crypto exchange Bybit announced mass layoffs for the second time in 2022.

Ben Zhou, co-founder and CEO of Bybit, announced a reorganization plan amid a prolonged bear market, which involves a significant reduction in the workforce. The “planned reduction” will affect employees at all levels:

“We are all saddened that this reorganization will impact many of our dear Bybuddies and some of our oldest friends.”

Freelance journalist Colin Wu pointed out that the layoff rate is 30%. On June 20, Bybit silently laid off employees, citing unsustainable growth, which was confirmed via leaked internal documents. Bybit’s workforce has grown from a few hundred to over 2000 in 2 years.

While announcing the upcoming downsizing, Zhou expressed his intention to make the relocation process as smooth as possible. Sufficient for this restructuring need, Zhou said:

“It’s important to ensure that Bybit has the right structure and resources to weather the market downturn and is nimble enough to seize the many opportunities ahead.”

For affected Bybit employees, the revelation is a hard pill to swallow, but Wu said the employees would receive three months’ salary in compensation.

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Related: Bybit releases reserve wallet addresses amid calls for transparency

On Nov. 24, Bybit launched a $100 million bailout fund to provide liquidity to institutional traders after the collapse of FTX.

The fund was made available to eligible market makers and high frequency trading institutions and distributed at a 0% interest rate.

The maximum amount distributed per contestant was $10 million provided the funds were used for Spot and Tether (USDT) perpetual trading on Bybit.