Coinbase will cut down the size of its workforce by 18 per cent to weather the economic downtime in the crypto market. The layoffs will affect employees across all sectors including senior leaders who have worked diligently to identify appropriate changes in the company. Affected employees will be notified via their personal emails.
Approximately, 1100 employees of the company’s 5000 employees will be laid off during the economic downtime. At the beginning of 2021, Coinbase ahead a total of 1,250 employees when crypto adoption was exploding. The new use cases enabled by crypto transactions prompted the massive team upscale. The company says it’s challenging to scale its growth given the 200% y/y hirings since 2021.
In a blog addressed to the team, Coinbase CEO Brian Armstrong said, ” Team, Today I am making the difficult decision to reduce the size of our team by about 18%, 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.”
He added, “over the past month, I’ve had many conversations with our Exec team and our board to discuss the recent, market events, as well as the state of our business and several realities, has become clear to me “
Coinbase will incur $40-$45 million to restructure expenses related to employee severance and other termination benefits ahead of the layoff. They will also have access to Talent Hub, a platform where Coinbase members will work to connect them with open positions and other firms.
For a couple of months, the company has been string held as the crypto market faces a downturn. In May, the company launched a cost-cutting initiative to help grow its revenue and later extended its hiring freeze.In the blog post, the company added, that we have exceeded the limit of how many employees we can integrate while growing our productivity. Adding new employees has made us less efficient