Amidst a downturn in the crypto market, global cryptocurrency exchange Coinbase is letting go of 950 employees and will be shutting down several projects, said its CEO Brian Armstrong in an official blog post.
“We need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market and capture opportunities that may emerge. Therefore, I’ve made the difficult decision to reduce our operating expense by about 25 per cent q-o-q which includes letting go of about 950 people,” Armstrong wrote.
Earlier last year in June, Coinbase had globally laid off 1,100 employees — about 18 per cent of its team across support organisations, including marketing and recruiting roles. The move had impacted 8 per cent employees at its India office.
Coinbase will be cutting sales and marketing expenses, technology and development, general and administrative expenses, and other operating expenses. The CEO 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.”
As part of a headcount reduction, Coinbase will be shutting down several projects where it has a lower probability of success. Its other projects will continue to operate as normal, just with fewer people on the team.
“While some of the factors that have brought us to this point are beyond our control, accountability rests with me as the CEO,” the CEO said.
Coinbase said it will be providing a comprehensive package to support employees through the transition, compliant with the employment laws of the country, the employees are based out of.