BANXA (TSX-V:BNXA, OTCQX:BNXAF) Holdings Inc said it has a “clear line to profitability” thanks to a series of cost-saving initiatives in response to the cryptocurrency market downturn.
The leading on-and-off ramp solution for Web3 said that the cost-cutting plan will ensure a stronger roadmap for its long-term success, according to a release.
BANXA said it plans to reduce its global employee headcount by approximately 30%, streamline SG&A accounts and downside its European Union (EU) operations and its executive team on the continent, including managing director Jay Lorenc.
READ: BANXA launches local payments in Turkey; releases crypto ‘Sell’ off-ramp for stablecoins with top global exchanges
The initiatives are anticipated to results in cost savings of over $10 million per year, BANXA told shareholders.
BANXA added that it is zeroing in on core, higher-margin revenue streams related to its on/off ramp product, with the goal of prioritizing the company's path to profitability.
The company said it will accelerate the product roadmap with a focus on expanding the Sell (offramp) feature to include the support of more coins and chains; enhance the API to allow for faster, more efficient onboarding of new partners; and increase local payments in key American, European and APAC markets.
Additionally, the group will continue to expand BANXA's NFT checkout product, and achieve deeper integration with existing partners to ensure they have the opportunity to benefit from the full range of technology offerings.
CEO Holger Arians told investors that the moves are “measures of a responsible management".
“We have experienced rapid growth over the last year and while we strongly believe demand will resume its global rise, we cannot ignore the current markets downturn and must be careful to grow with the long-term in mind so we can deliver sustainable value to both our partners and our shareholders,” Arians said in a statement.
BANXA said it believes the downturn is temporary, and that growth will resume within the next six to 18 months.
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