The US-based cryptocurrency exchange Coinbase will reduce its workforce by around 950 people.
The firm had previously laid off 18% of its employees due to adverse macroeconomic conditions.
- Brian Armstrong – CEO of Coinbase – said they had taken the “difficult decision” to dismiss 950 of its team members as part of the company’s long-term strategy to cut some costs amid the prolonged bear market.
- Armstrong further claimed that the crypto winter coincided with a broader economic downturn for the first time, which is another factor that played a role in the layoffs.
“While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount,” the executive stated.
- Affected Coinbase employees will receive a minimum of 14 weeks of base pay and health insurance. The platform will also provide transition support to another company if necessary.
- Despite the latest dismissal spree, Armstrong remains confident that the cryptocurrency market will emerge victorious after the bear market’s end, while Coinbase will stand as one of the leaders in its field.
“But it will take time for these changes to come to fruition, and we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market and capture opportunities that may emerge,” he concluded.
- Coinbase started downsizing its headcount in June last year, laying off 18% of its employees. Back then, Armstrong justified the move with the assumption that the global economy was about to enter into a recession after a 10+ year economic boom.