• Coinbase has announced that it is laying off 950 employees, which accounts for about 20% of the company’s workforce.
• This move is due to the ongoing bear crypto market and the broader macroeconomy.
• CEO Brian Armstrong has assured the public that the crypto exchange is well capitalized and added that crypto is not going anywhere.
Coinbase, one of the largest cryptocurrency exchanges in the world, has recently announced that it will be laying off 950 of its employees, which accounts for around 20% of the company’s total workforce. This decision has been taken in order to reduce the exchange’s operating costs by 25%.
The news was announced by Coinbase CEO Brian Armstrong, who stated that the bear crypto market, which has been ongoing for some time now, as well as the broader macroeconomy, are the main reasons why the exchange had to make such a difficult decision. He also assured the public that Coinbase is well capitalized and that the crypto market is not going anywhere.
Armstrong said that this is the first time the exchange has gone through a bear market that is coupled with a global economic meltdown. He added that reducing their expenses was the only way for Coinbase to increase its chances of succeeding in all scenarios. He said that while it was always painful to part ways with the company’s colleagues, there was no other way to reduce the expenses significantly enough without the layoffs.
The exchange has also stated that it will be providing assistance to all the affected employees. This assistance includes a severance package and outplacement services, as well as a continuation of certain benefits for a certain period of time.
Coinbase is just one of a number of companies that have resorted to layoffs in order to reduce costs. Many other cryptocurrency exchanges, such as Huobi, have also made similar announcements. Despite this, Armstrong has confidence in the future of the crypto market and has said that the exchange is well capitalized.