Coinbase has stated it will lay off another 950 workers, in addition to the 1,100 employees who were let go in June 2022 owing to the deteriorating cryptocurrency market.
Coinbase is considering laying off 950 more workers.
Brian Armstrong, the CEO and co-founder of Coinbase, claims that the current macroeconomic climate and the downward tendencies were seen in 2022 are becoming intolerable. Following the reductions from the previous year, when over 18% of employees left the company in June 2022, the corporation announced layoffs of roughly 950 personnel.
The CEO pointed to unscrupulous actors as significant causes of the crypto decline, notably the demise of FTX and its creator Sam Bankman-Fried.
The layoffs, according to the CEO, indicate other measures the exchange is getting ready to take to stay in the market. Providing services to millions of users, Coinbase is one of the exchanges that run globally.
In spite of the current uncertainty, the CEO reassured the customers and users of his passion for guaranteeing the future success of the cryptocurrency exchange. In order to ensure the company’s survival, approximately a fifth of its current workers will be laid off.
skyrocketing costs
The decision by Coinbase to implement new policies and terminate staff will enable it to cut costs by roughly 25% in the first quarter of 2023. The announcement was made after the annual planning that included estimates of the bull, base, and bear markets.
Using the same approach, the company was successful throughout past bear markets.
In the statement, Armstrong said the business seeks for the most efficient ways to cut costs and broaden its opportunities to succeed in the marketplace. The best approach to reduce its costs was to reduce manpower.
The business is also thinking about ending some projects with a poor chance of success.
Managing difficult situations
With the tough market conditions, Coinbase joins other large corporations in grumbling. The majority of businesses have decided to reduce headcount in order to control costs.
For instance, after taking control of Twitter, Elon Musk reduced the workforce by 50%. More than 11,000 Meta employees were fired. Additionally, cryptocurrency firms like Gemini, Kraken, and Genesis have reduced their staff.
The CEO of Coinbase reassured the public that his business was making efforts to weather the storm without disintegrating. He added that Coinbase’s cost management and innovation efforts would result in better times in the future.
The CEO compared the current economic downturns to the dot-com bubble when businesses recovered even more successfully.