Coinbase Lays Off 950 Employees Amid Crypto Market Downturn
Crypto exchange Coinbase has announced a significant round of layoffs, with around 950 employees, or 20% of its staff, set to lose their jobs. This is the third such cut in the past seven months, with the company attributing the decision to a downturn in the crypto market and industry misconduct.
Coinbase, founded by Brian Armstrong and Fred Ehrsam in 2012, has weathered previous crypto winters and remains optimistic about the future of cryptocurrency. However, the current economic downturn has led the company to take drastic measures to reduce operating expenses by 25% in the first quarter.
Since June, Coinbase has cut a total of 2,110 workers. This latest round of layoffs is expected to cost the company between $149 million and $163 million in restructuring costs, including $58 million to $68 million in employee severance and termination benefits. Affected U.S. employees will receive at least 14 weeks' pay, health insurance, and other benefits.
Coinbase's CEO, Brian Armstrong, acknowledges that the current crypto winter coincides with a broader economic downturn. He also expresses concern about further contagion from unscrupulous actors in the crypto industry. Despite these challenges, Coinbase remains confident in the long-term potential of cryptocurrency.
