crypto exchange coinbase He published a noteworthy letter regarding his current situation. The exchange confirmed it would make layoffs, citing “market conditions that continue to impact the crypto economy.”
The 8-K filing by Coinbase to the SEC stated that the restructuring meant the firm laid off 950 staff. The cost of doing so could be up to $163 million, counting the severance packages.
The file also stated that the layoffs are expected to end in the second quarter of 2023.
Coinbase first began reducing its workforce in June 2022, taking an 18% cut in its workforce. As a result of these layoffs, the company parted ways with 1,100 employees. CEO at the time Brian Armstrong, commented that “it is clear to me that we are over-hiring”. The CEO added that the firm had to “plan for the worst.”
Coinbase is currently the second largest crypto exchange in the market by 24-hour volume. CoinGecko reported yesterday that the platform has processed over $1.8 billion in transactions. In contrast, market leader Binance recorded more than $13 billion in transactions.
To the Coinbase Team,
NEWS CONTINUES BELOWin 2022 cryptocurrency market showed a downward trend along with financial markets. We also experienced problems caused by bad actors in the industry. These problems may continue to spread.
Coinbase is well-capitalized and crypto is not going anywhere. In fact, I believe the recent events will ultimately benefit Coinbase greatly (failure of a major competitor, regulatory clarity emerging, etc.) and they confirm our long-term strategy. But these changes will take time to bear fruit, and we need to make sure we have the appropriate operational efficiency to weather the crypto market downturns and seize the opportunities that may arise.
Details are coming…