Coinbase to let go 20% of workforce

Almost 1,000 jobs will be axed as the crypto sector struggles amidst economic uncertainties

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Given the economic uncertainty and fears of recession, the crypto space had been witnessing very weak trading volumes. Now, Coinbase Global, the cryptocurrency company, has decided to cut about 20 per cent of its workforce. At least 950 employees will be rendered jobless.

In June last year, that is, 2022, the global trading platform for crypto currency had taken the tough decision to do away with 18 per cent of its workforce, that is, about 1,100 employees. At the time, Brian Armstrong, CEO, Coinbase, had conveyed that the cost of employees was too much for the Company to handle, and that is why, the firm had taken the hard decision to reduce headcount.

In November again, it let go over 60 people from its recruiting and institutional onboarding teams.

At the beginning of 2021, the crypto trading platform boasted of a strength of 1,200 in its workforce, which petered down to about 6000 in June 2022!

This latest round of layoffs is the fourth one since 2021.

The platform anticipates an expenditure of at least about $149 million to restructure.

In 2022, the crypto sector had lost over a trillion dollars amidst rising inflation and recession fears. Shares of Coinbase dropped in value by about 86 per cent in 2022.

Other companies that have been adversely affected in this space are Three Arrows Capital and Celsius Network that have closed down.

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