Coinbase cuts roughly 1,100 jobs amid fears of a ‘crypto winter’
Coinbase is still struggling with a worsening cryptocurrency market. The exchange has announced that it's laying off 18 percent of its workforce, or about 1,100 jobs, to help weather difficult economic conditions. There's a "crypto winter," according to company chief Brian Armstrong, and the move is purportedly necessary to keep costs down during this dark period.
Armstrong also saw this as a response to excessive optimism about crypto's future. Coinbase felt it had to grow rapidly in 2021 to compete across numerous sectors and take advantage of crypto's value surge, but it's now apparent the company "over-hired" while the market was strong. The exchange started 2021 with 1,250 employees, and will still have roughly 5,000 people employed by the end of the current quarter.
The layoffs have been abrupt. Coinbase cut affected employees' system access at the same time as the announcement to prevent "rash decision[s]" by outgoing staff. The firm is promising at least 14 weeks of severance pay, four months of US health insurance and help finding new work, but the decision comes after multiple attempts to avoid cutting jobs. Coinbase first paused hiring, and later rescinded accepted job offers as economic conditions soured.
Coinbase isn't alone in dealing with the effects of crypto's collapse. Binance is facing a lawsuit over the failed TerraUSD stablecoin, while major lender Celsius has frozen withdrawals to help stabilize assets and honor obligations. The plunge in Bitcoin prices following Celsius' move led Binance to halt its own withdrawals for several hours. Crypto is very fragile at the moment, and it doesn't take much for the technology's largest supporters to suffer.
Coinbase is still struggling with a worsening cryptocurrency market. The exchange has announced that it's laying off 18 percent of its workforce, or about 1,100 jobs, to help weather difficult economic conditions. There's a "crypto winter," according to company chief Brian Armstrong, and the move is purportedly necessary to keep…
Recent Posts
- 30TB hard drives will finally become mainstream next year — Japanese rival to Seagate and Western Digital reveals plans to launch two 30TB+ HDDs in 2025 using two different technologies
- Quordle today – hints and answers for Sunday, May 19 (game #846)
- Blue Origin’s first crewed launch since 2022: Where to watch
- This modder proves everything’s better with a GBA SP screen attached
- Mobile industry is quietly preparing for the biggest change to your smartphone in a decade — iSIM will hasten the end of SIM cards and allow networks to preload plans on devices
Archives
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011