Coin basis announced its third round of layoffs amid a bear market. The cryptocurrency exchange has reduced its workforce by a total of 950 employees, or 20%.
In a letter to employees today, CEO and co-founder Brian Armstrong said he made the decision to ensure the exchange “has the appropriate operational efficiencies to coping with downturns in the cryptocurrency marketHe added that the move will help the company reduce operating costs by 25% compared to last quarter.
The CEO also said that he came to this decision after considering several scenarios for the cryptocurrency market in 2023, including bullish, basic and bearish option. He also said he had to part ways with some employees.
“Looking at the different scenarios for 2023, it has become Obviously we need to reduce expenses to increase our chances of success. While it’s always painful to part ways with colleagues, there was no way we could cut our expenses significantly enough without cutting headcount.”
The CEO also said they were leaving stop some projects whose probability of success was lower.
Coinbase is one of many cryptocurrency companies that have been hit hard by the recent market crash that saw an estimated $2 trillion wiped off the market. The price of Bitcoin, the world’s top cryptocurrency, fell to $17,000 after peaking near $65,000 in late 2021.
Coinbase then began cutting jobs in June of last year. At the time, the company said it “grew too fast” and that it needed to downsize in an effort to weather the cryptocurrency winter, laying off 1,100 employees, or about 18% of its workforce.
In early November, during the intense cryptocurrency winter, Coinbase has fired 60 more people to cut costs. “We quickly focus oncost optimization and liquidity management“, the exchange said in its report on the results of the third quarter.
You will notice that Coinbase shares, which went public in April 2021 and reached an all-time high of about $370, but have since lost nearly 90% of their value from their all-time highs. Shares of the company closed on the final day of Monday at $38.27, up more than 15%.
Aside from Coinbase, nearly every other major cryptocurrency exchange has also announced layoffs. Some well-known crypto platforms including FTP extensionfailed, further accentuating the collapse of the cryptocurrency market.
Another blow to Coinbase as the exchange agreed to pay a total of $100 million to settle a complaint about “certain historical shortcomings” in its regulatory compliance work.
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