The wave of layoffs at the crypto exchange Coinbase is entering the next round. After the US company laid off 1,100 employees in June 2022, 950 more must now go.
Coinbase is considered the largest trading platform for cryptocurrencies such as Bitcoin, Ethereum and Co. in the USA. However, due to the crypto market, which has been ailing for months, the company announced austerity measures in June 2022. At the time, CEO Brian Armstrong felt compelled to lay off around 1,100 employees because the company had grown too quickly.
Coinbase: Crypto exchange is laying off 20 percent of its workforce
But apparently that wasn’t enough. Because of the still difficult market environment, Coinbase has now laid off a further 950 employees. That comes from one official blog post of the company. Accordingly, those affected, who make up around 20 percent of the entire workforce, have already received a notice of dismissal.
With the job cuts, Coinbase wants to reduce its costs above all. In total, the company has now laid off more than 2,000 employees. The platform again puts the costs for its restructuring at 149 to 163 million US dollars. The process is expected to be completed by the end of the second quarter of 2023.
The crypto industry is suffering from the bear market
Coinbase CEO Brian Armstrong again justified the recent job cuts with the declining crypto market. The bankruptcy of the competitor FTX in November 2022 also shook the industry. According to Armstrong, the decision for another round of layoffs was again “difficult”.
Nevertheless, he was “still optimistic”. With a view to the future, “better days” are ahead of the entire industry. After the renewed job cuts, however, Coinbase must first discontinue some projects and continue others with fewer staff.