Coinbase CEO Brian Armstrong declared on June 14th that the business will layoff its worldwide headcount by around 18% in order to sustain a healthy company amid the current economic crisis.
1/ Today I shared that I've made the difficult decision to reduce the size of our team at Coinbase by about 18%. The broader market downturn means that we need to be more mindful of costs as we head into a potential recession.
— Brian Armstrong – barmstrong.eth (@brian_armstrong) June 14, 2022
Coinbase cuts off 1,100 employees over economic crises
Coinbase Global (COIN) disclosed that it is letting off around 1,100 personnel as part of a cost-cutting program. Coinbase announced in May that it will reduce its recruiting target and terminate fresh open positions.
Coinbase CEO @brian_armstrong announced today the difficult decision to reduce the size of the Coinbase team by 18%. More details and rationale in Brian’s email to employees, which has been made public for all to see ➡️ https://t.co/SpdZU3KdpS
— Coinbase (@coinbase) June 14, 2022
Coinbase, a cryptocurrency exchange located in the United States, has decided to cut its costs in line with the predictable market trend.
Brian Armstrong stated:
“Today, I am making the difficult decision to reduce the size of our team by about 18%, to ensure we stay healthy during this economic downturn. I want to walk you through why I am making this decision below, but first, I want to start by taking accountability for how we got here. I am the CEO, and the buck stops with me.”
Coinbase intends to downsize its workforce by around 18%. As per its most recent SEC filing, Coinbase will have around 5,000 total employees by the conclusion of the current quarter. Coinbase would save $40 million to $45 million in overall costs. The approach is likely to be executed by the end of Q2.
Coinbase over Crypto winter spreads
For more than two years, the crypto industry has been in a catastrophic decline. Bitcoin was last traded at $20,250.71, along with a transaction volume of 44,347,651,899 USD. Bitcoin has fallen 9.31% in the previous 24 hours.
Global markets appeared to be approaching a recession following a decade-long economic upswing. According to the report, the recession might trigger another crypto winter that lasts for months.
Coinbase income from trading has historically dropped during crypto winters. However, it is impossible to anticipate the market trend. Coinbase chooses to plan ahead so that it can continue to operate the firm regardless of the situation.
Coinbase shares dropped over 80% this year as a result of the sharp drop in cryptocurrency prices. It has impacted the exchange’s trading volumes. Coinbase stock rose roughly 1% in pre-market trade after the announcement of layoffs.
