Coinbase, a digital currency exchange that trades in crypto currencies, announced it had decided to reduce its workforce by 18% amid the market turmoil. The announcement follows the company’s original plans to slow the hiring process and the firm rescinding a number of employment offers.
Coinbase ‘Grew Too Quickly,’ Crypto Exchange CEO Says
On June 14, Coinbase published a blog post written by the company’s CEO Brian Armstrong. Armstrong sent a tweet confirming the news. It stated that Brian Armstrong, Coinbase’s CEO, had announced the difficult decision today to cut 18% of its team. More details and rationale in Brian’s email to employees, which has been made public for all to see,” the company added.
Armstrong’s letter explains the decision was made so Coinbase can remain healthy. “Today I am making the difficult decision to reduce the size of our team by about 18%, to ensure we stay healthy during this economic downturn,” Armstrong wrote. “I want to walk you through why I am making this decision below, but first I want to start by taking accountability for how we got here. I am the CEO, and the buck stops with me.”
Armstrong further noted that “economic conditions are changing rapidly,” and that “managing our costs is critical in down markets.” He also said Coinbase “grew too quickly.” All employees would receive a letter from the Human Resources (HR) department, Armstrong detailed. The letter, Armstrong said, will inform you if you “are affected or unaffected by this layoff.” Employees let go will get a minimum of 14 weeks of severance pay, four months of COBRA health insurance, and access to Talent Hub.
Coinbase follows the Layoff Trend. COIN Shares down 85%
Coinbase laid off 18% employees, following a string of other cryptocurrency companies who are firing their staff. Bitcoin.com News reported on Blockfi cutting staff by 20% on Monday, and Crypto.com’s CEO saidThe exchange was forced to fire 260 workers. “Our approach is to stay focused on executing against our roadmap and optimizing for profitability as we do so,” Crypto.com’s CEO Kris Marszalek remarked. Marszalek added:
It means taking difficult, but essential decisions that will ensure long-term sustainable growth. This includes reducing approximately 260 to 5% of our workforce.
Many other companies that are crypto-focused, such as Bitso (Buenbit), Bitso (Rain Financial), 2TM (Gemini), and 2TM (both Rain Financial), have also reduced staff. The Coinbase layoffs also coincide with the company’s stock dropping significantly in value. Initial trading at $342 per shares, COIN has fallen 85.54% since then and is currently trading for $49.35 each Tuesday (ET).
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