Coinbase to downsize workforce by 18 pc, will lay off around 1,100 employees
Recently, the crypto exchange had announced it was pausing hiring employees. Two weeks later, the firm confirmed it was extending the freeze for the "foreseeable future."
Crypto exchange on Tuesday announced that it plans to lay off about 1,100 employees—around 18 percent of its workforce—as part of its efforts to manage costs amid the impending economic downturn, what it calls 'crypto winter'.
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In a blog post, CEO Brian Armstrong announced, "Today I am making the difficult decision to reduce the size of our team by about 18 percent, 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."
The blog post further stated that Coinbase survived through four major crypto winters. "We’ve created long-term success by carefully managing our spending through every down period. Down markets are challenging to navigate and require a different mindset," it added.
Earlier this month, the firm announced a hiring freeze, extending it for the "foreseeable future. This is contrary to the March announcement where Coinbase had planned to add 2,000 roles in product, engineering, and design. In April 2022, in order to support Indian startups, the company said it would invest long-term in India and hire 1,000 people by the end of the year.
(The last paragraph was updated to add context.)
Edited by Kanishk Singh