Coinbase Announces Massive Layoff of 1,100 Staff Following Market Conditions

• Earlier this month, Coinbase announced that it would be extending its hiring freeze.
• Shares of Coinbase have fallen almost 7% on the announcement.

CEO and Cofounder Brian Armstrong has a message for all Coinbase workers as the company plans to slash nearly 1,100 positions or about 18 percent of its worldwide staff.

According to Coinbase CEO Brian Armstrong:

“In the next hour every employee will receive an email from HR informing if you are affected or unaffected by this layoff,” the Coinbase CEO said in a blog post.

An economic downturn that might trigger another crypto winter and linger for a lengthy time, according to Armstrong, was a factor in the company’s decision to reduce employment. To keep expenses down during turbulent market circumstances, the crypto exchange eliminated 18% of its personnel.

In the latest symptom of the financial market collapse striking the crypto sphere, Celsius Network, a prominent US bitcoin lending firm, has frozen withdrawals and transfers.

Coinbase Shares Plummet Further

Earlier this month, Coinbase announced that it would be extending its hiring freeze for the foreseeable future and rescinding several previously accepted job offers. Employees’ severance and other termination benefits accounted for most of the company’s anticipated restructuring costs, which were disclosed in a filing.

Shares of Coinbase have fallen almost 7% on the announcement. It is on course to hit a new record low of $48 after falling by an astounding 79% since the beginning of the year. Approximately 5,000 full-time workers work for the crypto behemoth, which implies its employment will fall by approximately 18 percent. 

CEO Brian Armstrong has stated that it is no longer sustainable despite the company’s rapid expansion and that the exchange must adapt to a new climate. Armstrong predicts a long-lasting crypto winter if the US economy goes into recession.