• Coinbase announced layoffs of 950 employees in their second round of job cuts.
• This comes after 1,100 employees were laid off in June 2022 due to the deteriorating crypto market.
• The move is to reduce Coinbase’s expenses by 25% in the first quarter of 2023 and increase their options for survival.
Coinbase, one of the world’s leading crypto exchanges, has announced a second round of job cuts, letting go of 950 employees. This is in addition to the 1,100 employees that were already laid off in June 2022 due to the deteriorating crypto market.
The CEO and Co-Founder of Coinbase, Brian Armstrong, cited unscrupulous actors, including the FTX and its founder Sam Bankman-Fried, as significant contributors to the crypto downturn. Moreover, he noted that the layoffs are a sign of other measures the exchange is taking to remain in the market. Despite the anxiety, he assured users and customers of his passion for ensuring Coinbase benefits in the future.
The move to let off almost a fifth of its current workforce is to help reduce its expenses by almost 25% in the first quarter of 2023. This was done after the annual planning that estimated the bull, base, and bear markets. Previously, Coinbase has used the same strategy to succeed in bear markets.
Armstrong has indicated that the company is looking for the most effective ways to reduce expenses and increase its options for survival. He also stated that this is a hard decision for the company but it is necessary for them to remain competitive.
The layoffs come at a time when Coinbase is struggling to make profits in the crypto market. This is due to the lack of trust in the industry, which has caused a decrease in users and customers. Despite this, the company is still striving to remain competitive and make sure that its users have a safe and secure experience with their platform.
