Updated · Nov 16, 2022
Coinbase Cuts 1,100 Jobs as Market Continues to Slump
Updated · Jun 15, 2022
The cryptocurrency exchange announced the cuts on Tuesday, blaming an impending recession.
Coinbase has said that it will lay off 1,100 employees, or about 18% of its workforce. CEO and co-founder Brian Armstrong disclosed this on Tuesday. He said the decision was forced by the current downturn in the cryptocurrency market, rising costs, and accelerated growth.
“We appear to be entering a recession after a 10+ year economic boom,” Armstrong said in a statement. “A recession could lead to another crypto winter, and could last for an extended period.”
The cryptocurrency market has seen extreme volatility this year that has wreaked havoc on the industry. It has escalated as investors dump assets they consider risky over concerns of rising inflation rates. Bitcoin, the largest cryptocurrency, has fallen to about a third of its peak, carrying other tokens along with it.
Coinbase attributed the layoffs to rapidly changing economic conditions and the need to manage costs. The platform also said it is “challenging to grow at just the right pace” given its sharply increased workforce at the peak of the cryptoverse boom.
The layoff follows a decision announced earlier this month to freeze hiring. The company rescinded many accepted offers.
Over the last few days, crypto platforms BlockFi and Crypto.com disclosed that they were cutting hundreds of jobs as they sought to keep with a gloomy outlook.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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