Coinbase slashes staff by 18% amidst bear market
Coinbase will cut around 1,100 jobs to cut costs amidst the extreme volatility in the crypto market
By Shashank Bhardwaj
Coinbase, a popular crypto exchange based in the U.S, will cut down its staff by 18 percent, citing unstable market conditions during the bear market. Brian Armstrong, CEO of Coinbase, went on Twitter to express his regrets over the decision to cut down 1,100 jobs from his existing workforce.
Coinbase stated that it would slow down hiring and examine its personnel to guarantee that it could continue to operate as planned. Armstrong stated, "We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter and could last for an extended period."
He also talked about how Coinbase has sailed through four crypto winters since its establishment in 2012. Past crypto winters have seen significant declines in trading revenue, and the decision was necessary to cut costs, given the nearing recession.
Armstrong stated that the company grew at a very fast pace. Coinbase's number of employees had reached approximately 1,250 employees by early 2021. According to the CEO, the team has grown four-fold in the last 18 months, and their employee expenditures are ‘too high’ to effectively manage during these volatile times.
The official announcement stated that all the employees affected by the cutdown would receive benefits like four months of health insurance in the US and four months of mental health support anywhere in the world. They will also receive help finding new employment, including a minimum of 14 weeks of severance and an extra two weeks for each year of employment beyond one year.
The news about the layoff came only a few hours after Armstrong tweeted, criticising the employees for circulating a public petition calling for the removal of some senior Coinbase officials in a vote of no confidence. The petition requested that chief operating officer Emilie Choi, chief product officer Surojit Chatterjee, and chief people officer LJ Brock be fired.
Coinbase has become another company to join the list of companies that have had to turn to extreme layoffs due to the current bear market, including the Winklevoss brothers-founded Gemini, crypto-friendly trading site Robinhood, and the BlockFi trading platform, which announced a 20 percent layoff on Monday.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash