Liquidity provider Paradigm announced that the company would cut salaries across the board by 15% this week in the wake of the FTX collapse.
We made the difficult decision to cut salaries across the board by 15% this week Post FTX’sFTX’s collapse, it is clear the contagion is deep and wide and like many of our clients and peers, we are not immune, Paradigm said in a recent Tweet.
According to the company, salary cuts reduce the need for layoffs across the ecosystem and have a smaller impact on the organisation’sorganisation’s momentum.
These are tough times but we must do the hard thing and retain the financial flexibility to navigate the turbulent times we find ourselves in as an industry it added.
Paradigm provides a platform for traders and market makers to execute option and futures block trades. Previously, in October 2021, Paradigm closed a $35 million Series A round led by Alameda Ventures and Jump Capital.
Not only Paradigm but also trading and lending platform Amber announced today that performance-based bonuses will be phased out in 2022. This year, Amber will lay off between 1,300 and 400 employees.
Amber has implemented a number of cost-cutting measures, including layoffs and wage reductions, since June. Some of its executives have agreed to forego all or part of their pay until the market shows clear signs of recovery.
“Even before the collapse of FTX, we were preparing for potentially a prolonged crypto winter,” Amber Chief Executive Officer Michael Wu said in a Bloomberg interview.
The company is cutting costs, and “there will unfortunately not be bonuses this year.”
Amber has stated that less than 10% of its trading capital was trapped on the defunct crypto exchange FTX, and executives have sought to reassure the public that the company’s daily operations have not been disrupted.
Layoffs have impacted the entire industry in recent months. Plaid, a Fintech firm, laid off approximately 260 employees in December. Kraken, a cryptocurrency exchange, cut 1,100 employees, or 30% of its workforce, in the past month.