• Coinbase has announced that it is laying off 950 employees, or 20% of its workforce, to reduce operating costs by 25%.
• The move is a response to the ongoing bear crypto market and the broader macroeconomy.
• Despite the layoffs, Coinbase CEO has confirmed that the exchange is well capitalized and that crypto is not going anywhere.
Coinbase, a leading American-based cryptocurrency exchange, has recently announced that it is cutting down on its operating expenses by 25%. This move includes laying off 950 employees, which accounts for about 20% of the company’s workforce. The decision was made in response to the ongoing bear crypto market and the broader macroeconomy.
The exchange’s CEO, Brian Armstrong, has listed these two economic conditions as the main reasons for reducing the company’s expenses. He noted that while Coinbase has gone through multiple crypto bear markets, the current bear market is proving to be a real struggle. This is the first time that a global economic meltdown has aligned with a bear crypto market. Armstrong said: “As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario. While it is always painful to part ways with our colleagues, there was no way to reduce our expenses significantly enough without making this hard decision.”
Despite the layoffs, the CEO assured the public that the crypto exchange is well capitalized and added that crypto is not going anywhere. He shared that the company’s goal remains to continue building the best platform to serve institutional and retail customers, while also giving back to the broader crypto ecosystem.
Coinbase has been one of the most prominent players in the cryptocurrency space, and the news of layoffs has come as a blow to the wider crypto community. The company has been a driving force in the industry, and it has been a leader in the adoption of cryptocurrency in the mainstream.
Going forward, it remains to be seen how the exchange will fair in the bear market. While the news of layoffs has been met with some criticism, the exchange is doing its best to stay afloat in these difficult times. In the long-term, Coinbase’s goal is to remain a leader in the cryptocurrency space, and it will continue to strive to meet the needs of its customers.