Coinbase Lays Off 950 More Jobs as Crypto Market Slumps

Coin­base lays off 950 more after 7 months of 1,100 job cuts. In a memo to staff, the com­pa­ny’s CEO Bri­an Arm­strong said the deci­sion to cut oper­at­ing expens­es by 25% quar­ter-on-quar­ter amid a down­turn in the cryp­tocur­ren­cy mar­ket and the broad­er econ­o­my led to layoffs.

says. Coin­base says it has more than 4,700 employ­ees on its web­site, so that would cut it by about a fifth.

Arm­strong acknowl­edged that some of the fac­tors that led to the lay­offs were beyond the com­pa­ny’s con­trol, but said he would “take respon­si­bil­i­ty.” He added that in ret­ro­spect, Coin­base could have laid off more peo­ple in June.

Arm­strong said the com­pa­ny is “well-cap­i­tal­ized and cryp­tocur­ren­cies aren’t going any­where,” and that recent moves like the FTX bank­rupt­cy and clear rules from reg­u­la­tors could ben­e­fit Coin­base in the long run point­ed out that there is a But such changes do not hap­pen overnight.

“We need to ensure ade­quate oper­a­tional effi­cien­cies to weath­er the cryp­tocur­ren­cy mar­ket down­turn and seize oppor­tu­ni­ties that may arise,” Arm­strong wrote.

In plan­ning for 2023, Coin­base man­age­ment deter­mined that it was nec­es­sary to “cut costs to increase the odds of suc­cess in any scenario.”

Arm­strong points out that this is the first time that both the cryp­tocur­ren­cy mar­ket and the broad­er econ­o­my have expe­ri­enced a down­turn at the same time, and what has helped Coin­base sur­vive sev­er­al bear mar­kets over the past decade is the I add that it is intentional.

Due to the lay­offs, Coin­base has can­celed sev­er­al projects with a low chance of suc­cess. Oth­er teams have to adapt to small­er work­forces. Arm­strong said employ­ees who have been laid off will be noti­fied lat­er today.

Affect­ed employ­ees in the U.S. will receive at least 14 weeks of base salary plus two weeks of addi­tion­al pay for each year of ser­vice, health insur­ance and oth­er benefits.

He said he would pro­vide “addi­tion­al tran­si­tion assis­tance” for those with work visas. Coin­base plans to pro­vide sim­i­lar assis­tance to work­ers laid off in oth­er coun­tries in accor­dance with local labor laws to help those laid off find employ­ment again.

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