Coinbase has announced it will cut another 950 employees, adding to the 1,100 who were laid off in June 2022 due to the deteriorating crypto market.
950 more employees on Coinbase’s chopping block
According to Coinbase CEO and Co-Founder Brian Armstrong, the downward trends experienced in 2022 and the current macroeconomic environment are becoming unbearable. The company announced layoffs of about 950 people after last year’s cuts, when almost 18% of employees left the company in June 2022.
The CEO cited unscrupulous actors, including the collapse of FTX and its founder Sam Bankman-Fried as significant contributors to the crypto downturn. The CEO also noted that the layoffs are a sign of other things the exchange is preparing to do to remain in the market.
Coinbase is among the exchanges that operate across the globe, offering services to millions of users.
The CEO assured the users and customers of his passion for ensuring the crypto exchange benefits in the future amidst the current anxiety. Therefore, letting off almost a fifth of its current workforce is a step to help the company survive.
The move by Coinbase to engineer new measures and let off employees is to help reduce its expenses by almost 25% in the first quarter of 2023. The announcement came after the annual planning by estimating the bull, base, and bear markets.
The company succeeded in previous bear markets using the same strategy.
Armstrong, in the statement, indicated that the company looks for the most effective ways to reduce expenses and increase its options for doing well in the market. Reduction of headcount was the most appropriate way to lower its costs.
In addition, the company is considering terminating several projects with a low probability of success.
Dealing with tough times
Coinbase joins other big companies grumbling with the challenging economic challenges. Most companies have chosen a reduction of headcount to deal with expenses.
For instance, Elon Musk slashed half of the workforce after his Twitter takeover. Meta got rid of more than 11,000 employees. Other crypto companies such as Gemini, Kraken, and Genesis have also cut their personnel.
The Coinbase CEO assured the public that his company was working towards passing through the tough times without breaking apart. He also noted that cost management and innovation engaged by Coinbase would lead to better days in the future.
The CEO likened the present downturns to the dot-com bubble, where companies came out stronger than before.