Coinbase Trims Workforce, Plans To Lay Off 1,100 Employees

As part of a massive reorganization plan unveiled earlier today, Coinbase, the largest cryptocurrency exchange in the United States, plans to terminate up to 1,100 employees.

Coinbase’s stock has now dropped over 7% as a result of the announcement. They’re on track to hit a new low of $48, having plummeted by a whopping 79 percent since the start of the year.

The crypto behemoth now employs around 5,000 full-time employees, implying that its employment will fall by roughly 18%. The Bitcoin market is currently experiencing a severe bear market.

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

 CEO Brian Armstrong, who just purchased a $133 million Bel Air estate, has recognized that the company’s rapid growth was unsustainable, and the exchange now needs to adapt to a new climate. Armstrong believes the US economy will suffer a recession, resulting in a long-term crypto winter.

He goes on to say that during the bull market, the exchange hired too many staff. While the choice to drastically reduce the personnel was “difficult,” it was also the most “prudent” thing to do, according to chief operating officer Emilie Choi.

The Coinbase CEO, however, emphasized that the company’s financial situation was solid enough to “power through” any crypto winter. Earlier this month, the largest American exchange halted hiring and canceled job offers.

Coinbase has followed BlockFi, Gemini, and other firms in cutting off a significant portion of their workforce. However, because of adequate financial reserves, Ripple recently declared that it would defy the trend by recruiting more people.

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