FTX will not cut jobs because they hired ‘carefully’, CEO says

FTX will not be scaling back on its staff, according to CEO Sam Bankman-Fried. The company is “going to keep pushing forward,” he said.

FTX CEO Sam Bankman-Fried says the cryptocurrency exchange will “zag” where other crypto firms “zig.” In short, he does not see the crypto platform freezing its hiring process or laying off staff as has happened in recent months across the industry.

This, he noted in a Twitter thread, is “regardless of market conditions” that has most crypto firms nursing losses in line with the bear market.

FTX to ‘keep pushing’

Bankman-Fried notes that FTX can continue to grow because it adopted a careful hiring approach, and over the last couple of years, scaled its revenue and productivity – not expenses.

“A lot of reporters have reached out asking if we’re going to be scaling back. And our answer is the same as always: We’re going to keep pushing forward,” the FTX chief wrote.

He says instead of cutting jobs, the platform looks to employ more. However, this will be done at a more sustainable rate. Bankman-Fried and team will also look to uphold the same high standards adhered to during previous hiring.

And again, FTX never froze hiring. It just slowed down after hitting 250 employees to have enough time to fully integrate the new staff into the company’s culture.

19) Sometimes, when others Zig, you Zag.

— SBF (@SBF_FTX) June 6, 2022

Bankman-Fried’ thoughts on hypergrowth companies

Several crypto firms have announced job cuts amid the crypto winter, including Gemini and Coinbase. Past bear markets, notably in 2018, also saw several companies send employees packing – many after a hiring spree during the bull market.

According to Bankman-Fried, this kind of hypergrowth does not always lead to more productivity or growth. Instead of having the 10x productivity targeted, it all backfires to a point nothing gets done.

Why?

Because “coordination becomes really hard,” with diffusion of responsibility also hitting as more people join. 

When it becomes hard to align incentives to employees, then the firm is in trouble. He explained further why some of the most successful companies then end up decaying.

“It’s a race–between how quickly new employees understand the company’s culture, and how quickly people are hired. The faster you hire, the harder it is to keep everyone on the same page.”

And this is how a company can quickly descend into a Moloch, he added.