To survive the bear market, Bybit announces a second round of layoffs for 2022

Yes, the bear market purges the bad actors, but it also compels the established players to reconsider their business plans to counteract the ensuing losses.

Bybit, a cryptocurrency exchange, announced mass layoffs for the second time in 2022 as part of this effort. Amid a protracted bear market, Ben Zhou, the co-founder and CEO of Bybit, announced a reorganization plan that calls for a significant reduction in staff.

The "planned downsizing" will have an impact on all employees:

"We are all saddened by the fact this reorganization will impact many of our dear Bybuddies and some of our oldest friends."

Independent reporter Colin Wu highlighted the 30% layoff rate. Bybit silently terminated staff on June 20 due to unsustainable growth, which was confirmed by leaked internal documents. In just two years, Bybit's staff grew from a few hundred to over 2000. Zhou shared his intention to streamline the offboarding procedure when he announced the impending downsizing.

Zhou explained the need for restructuring as follows:

"It's important to ensure Bybit has the right structure and resources in place to navigate the market slowdown and is nimble enough to seize the many opportunities ahead."

The news is difficult for the affected Bybit employees to accept, but according to Wu, they will receive three months of pay as compensation.

Following the FTX collapse, Bybit established a $100 million support fund on November 24 to give institutional traders access to liquidity.

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

The most money that could be given to each applicant was $10 million, but only if they agreed to use the funds for spot and perpetual Tether trading on Bybit.