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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