Coinbase Trims 18% of Staff Amid Impending Crypto Winter
Cryptocurrency exchange Coinbase lays off roughly 1,100 employees as CEO Brian Armstrong warns of a prolonged market downturn and an over-hired workforce. The move mirrors broader struggles across the digital currency industry.
Cryptocurrency exchange Coinbase lays off about 18% of its workforce, cutting approximately 1,100 jobs as the company prepares for a prolonged market downturn. CEO Brian Armstrong points to an impending recession and an upcoming "crypto winter," a period where digital currency prices contract and stay low for an extended time, as the primary drivers behind this drastic reduction.
Armstrong admits that the company grows too quickly following its public debut last year, acknowledging that leaders over-hired during the recent boom. Affected employees learn about their termination abruptly, as the company cuts off internal system access and sends layoff notifications directly to personal email addresses to protect sensitive customer data.
This workforce reduction reflects a brutal year for the digital currency market, with Bitcoin losing more than half of its value since peaking near $69,000 in November 2021. Other major crypto companies, including BlockFi and Crypto.com, announce similar layoffs as the industry shifts away from the peak mania of 2021 and enters a much colder economic climate.