Cryptocurrency trading platform Coinbase said on Tuesday it will lay off about 20 percent of its staff, its latest move to cut costs as cryptocurrency markets and technology companies tumble. Lower their expectations for growth.
In a note to employees, she said the company is laying off about 950 people, which comes next Cut about 1,100 employees in Junealso about a fifth of its workforce at the time.
Coinbase CEO Brian Armstrong said in the note that “in hindsight, we could have cut more” in the layoffs announced last year. As pointed out FTX breakdownwhich has created turmoil throughout the cryptocurrency industry, has had an impact on Coinbase.
“In 2022, the cryptocurrency market has trended downward along with the broader macro economy,” Armstrong wrote. “We have also seen the repercussions of unscrupulous actors in the industry, and there are still more infections.”
The downturn in cryptocurrency has put pressure on companies like Coinbase, which went public in 2021 and expanded rapidly during the pandemic. Bitcoin price is down more than 70 percent from 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. High interest rates, stubborn inflation and other factors that have slowed the economy since then have forced many CEOs to rethink their plans.
Coinbase said the latest cuts were part of a plan to cut costs by 25% this quarter. Coinbase said the layoffs would cost between $149 million and $163 million. The company offers laid-off employees at least 14 weeks of basic pay, health insurance, and help finding their next job.
Still, mr. Armstrong said that some of the recent developments in the cryptocurrency world, including the downfall of what he described as a “major competitor,” could “end up benefiting Coinbase in a big way.”
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”
Beware of these heavily indebted stocks such as F, CVNA and WBA with higher borrowing costs
The resignation of the head of the National Bank of Saudi Arabia after the statements of Credit Suisse
First Nationals Close to Deal to Buy Silicon Valley Bank: Report