In question, the cryptocurrency bear market in 2022 and the defeat of “unscrupulous actors”, according to the boss of the platform.
The cryptocurrency trading platform Coin basis announced Tuesday it was parting ways with 950 employees, or just over 20% of its workforce, citing the decline in virtual currencies and the impact of the rout of “unscrupulous actors“. The group indicates on its website that it has more than 4,700 employees worldwide. “In 2022 the cryptocurrency market has seen a downward trend, as well as the macroeconomy in generalCoinbase chief Brian Armstrong said in a message to employees.
“We too have suffered the repercussions [des activités, nldr] of unscrupulous players in the industry, and the contagion could continueBrian Armstrong added, referring to the dramatic failure of cryptocurrency exchange FTX, which filed for bankruptcy in November. Its co-founder and former boss, Sam Bankman-Friedis prosecuted by American courts, in particular for fraud and criminal conspiracy.
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Coinbase had cut 18% of its workforce last June, already suffering the shocks of the cryptocurrency market at the time. This new social plan, which is due to be completed by the second quarter, will cost the company between $149 million and $163 million, according to estimates provided in a filing sent to US stock market policeman, the SEC.
Coinbase expects an approximately 25% reduction in operating expenses in the first quarter of 2023 compared to the previous quarter. Nasdaq-listed Coinbase stock fell 2.7% in e-commerce before Wall Street opened. The dismissed employees will receive financial compensation. Those stationed in the United States will receive at least 14 weeks of their salary, health care coverage and other wage benefits.
Other cryptocurrency exchanges, including Kraken and Gemini, have announced layoffs in recent weeks. More broadly, several US tech groups have recently announced layoffs, including IT group Salesforce, Meta (Facebook, Instagram, WhatsApp), Amazon, and Twitter.