Coinbase Trims 18% of Workforce Amid Crypto Market Downturn
Coinbase lays off approximately 1,100 employees as CEO Brian Armstrong admits the company expanded too rapidly during the crypto boom. The exchange faces significant financial pressure as plummeting crypto prices severely reduce transaction volumes.
Coinbase reduces its workforce by around 1,100 employees, cutting the staff by roughly 18% as part of a broader cost-cutting plan. The cryptocurrency exchange expects to incur $40 million to $45 million in restructuring expenses and leaves approximately 5,000 total employees by the end of the current quarter. Affected workers receive the termination news in their personal email inboxes after the company cuts their access to internal systems.
CEO Brian Armstrong publicly acknowledges that the company grows too quickly during the recent cryptocurrency bull market, scaling from 1,250 employees at the beginning of 2021. He warns that the broader economy is entering a recession after a decade-long boom and points to the possibility of another extended crypto winter. This rapid expansion now forces the company to retract job offers and shrink its operations to match the current market reality.
The layoffs occur as Coinbase shares drop almost 80% this year due to sharply declining crypto prices and reduced transaction volumes. Financial firm Mizuho lowers its price target for the exchange out of concern that staff cuts hinder the development of new revenue streams. Coinbase joins a growing list of crypto companies, including BlockFi, Crypto.com, and Gemini, that are significantly reducing their headcounts to survive the market turbulence.