Coinbase is the latest in a slew of companies that have had to let employees go amid the current bear market. The exchange announced in a blog post that it would be slashing 1,100 jobs, or around 18 percent of its total workforce, as it prepares for an “extended” crypto winter:
(Another) Crypto Winter Is Coming
Coinbase CEO Brian Armstrong has admitted “it is now clear to me that we over-hired”, noting that economic conditions are “changing rapidly” as the world appears to be entering a recession. He said it “could lead to another crypto winter, and [it] could last for an extended period”. Coinbase joins companies such as BlockFi and Crypto.com who announced this week that they would be shedding 400-plus jobs.
Armstrong’s latest plan, to be executed by the end of the second quarter, will see the company’s total workforce whittled down to 5,000 employees. The CEO conceded that the company “grew too quickly” in the bull market, scaling up from 1,250 employees at the start of 2021.
Coinbase shares are down almost 80 percent this year amid a sharp decline in crypto prices which has hurt the exchange’s transaction volumes.
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