• Coinbase will layoff 950 more employees in the second round of job cuts on January 10, 2023.
• This is in addition to the 1,100 employees who were laid off in June 2022 due to the deteriorating crypto market.
• This move is to help the company reduce its expenses by 25%, and to prepare for future bull, base, and bear markets.
Coinbase, a crypto exchange that operates across the globe, has announced it will layoff 950 more employees on January 10, 2023, in the second round of job cuts. This is in addition to the 1,100 employees who were laid off in June 2022 due to the deteriorating crypto market.
According to Coinbase CEO and Co-Founder Brian Armstrong, the downward trends experienced in 2022 and the current macroeconomic environment have become unbearable. The CEO cited unscrupulous actors, including the collapse of FTX and its founder Sam Bankman-Fried, as significant contributors to the crypto downturn.
The move by Coinbase to engineer new measures and let off employees is to help reduce its expenses by almost 25% in the first quarter of 2023. The announcement came after the annual planning by estimating the bull, base, and bear markets. The company has succeeded in previous bear markets using the same strategy.
The CEO assured the users and customers of his passion for ensuring the crypto exchange benefits in the future amidst the current anxiety. Therefore, letting off almost a fifth of its current workforce is a step to help the company survive. Armstrong indicated that the company is looking for the most effective ways to reduce expenses and increase its options for the future.
Coinbase is one of the largest crypto exchanges operating in the world, and the job cuts are a sign of the challenging times the company is facing. Despite the tough times, the CEO is still optimistic that the exchange will come out on top and benefit in the future.