Coinbase to cut staff amid falling crypto market

The exchange plans to lay off about 18% of its staff

15.06.2022 - 06:35

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What’s new? Cryptocurrency exchange Coinbase will reduce the number of employees by about 18%. This decision has been taken as part of the platform’s cost-cutting efforts amid the coming crypto winter on the market. The company has already developed several programs in order to minimize the impact on the downsized employees. This was announced on Twitter by Coinbase CEO Brian Armstrong.

Screenshot of the tweet

What other statements have been made? Armstrong stressed that the team has grown rapidly over the past two years, which has negatively affected the company’s operation efficiency. According to him, Coinbase will need some time to adapt to the new scale before the next growth. In addition, he warned of a prolonged recession looming because of the market situation. Armstrong described his decision to reduce staff as “difficult.” However, the downsized staff will receive cash compensation equal to 14 weeks’ salary and other bonuses.

What is crypto winter? This term implies a prolonged bear market when the value of major crypto assets falls for an extended time. The first crypto winter was in 2014-2015 and the second in 2017-2018.

Earlier, the head of cryptocurrency exchange Binance Changpeng Zhao said that crypto winter is a great time to expand staff and make new acquisitions for the company. According to him, Binance intends to make the most of crypto winter. Binance plans to hire new employees, as well as new mergers and acquisitions (M&A).

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