Coinbase, a cryptocurrency trading platform, said Tuesday that it would lay off around 20 percent of staff. This is the latest move to cut costs in the face of falling cryptocurrency markets. Lower their expectations for growth.
In a note she sent to employees, she mentioned that the company would be laying off approximately 950 people. Cut about 1,100 employees in JuneIt employed about a fifth its workforce at that time.
Coinbase CEO Brian Armstrong said in the note that “in hindsight, we could have curtailed more layoffs” in the layoffs announced last year. As noted FTX breakdownCoinbase has felt the effects of this turmoil, which has caused chaos in the cryptocurrency market.
“In 2022, the cryptocurrency market has been trending lower along with the broader macro economy,” Mr. Armstrong wrote. “We have also seen the repercussions of unscrupulous actors in the industry, and there are still more infections.”
Companies like Coinbase are under pressure due to the downturn in cryptocurrency. Coinbase went public in 2021, and has grown rapidly since then. Bitcoin’s price has fallen more than 70% since its peak in 2021.
A number of tech companies, including Amazon, Meta and Salesforce, recently announced layoffs, many of which — like Coinbase — said they hired aggressively during a flurry of activity in the early stages of the pandemic. Many CEOs have had to reconsider their plans due to high interest rates and stubborn inflation.
Coinbase stated that the latest cuts are part of a plan for cutting costs by 25% in the current quarter. Coinbase stated that the layoffs would cost between $149 and $163 millions. The company offers laid-off employees minimum 14 weeks of basic pay, as well as health insurance and assistance in finding their next job.
Mr. Armstrong however stated that some of the recent developments within the cryptocurrency world, including the downfall, he described, of a “major competition”, could “end-up benefiting Coinbase substantially.”
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